Retained earnings do not represent cash that is available to a company for future operations and expansion.

Name: Retained earnings do not represent cash that is available to a company for future operations and expansion.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Retained earnings are the cumulative net income that a company has reinvested in the business rather than distributed as dividends. They are not necessarily available as cash, as they may be used for other purposes like paying off debt or reinvesting in the business.

Retained Earnings Do Not Represent Cash That Is Available to a Company