The retained earnings account represents the excess of net income over dividends retained in the business since its inception.

Name: The retained earnings account represents the excess of net income over dividends retained in the business since its inception.
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Question

Quizplus · Accepted Answer

Retained earnings are the cumulative amount of net income that a company has kept in the business after paying out dividends to shareholders since the company's inception.

The Retained Earnings Account Represents the Excess of Net Income