Retained earnings
A) is unique to the corporate form of business.
B) is an optional account in the partnership form of business.
C) reflects cash paid in by shareholders to date.
D) is closed at the end of the year.

Question

Quizplus · Accepted Answer

Retained earnings is a term specifically associated with corporations. It represents the accumulated net income of a corporation that has not been distributed to shareholders as dividends. This concept is unique to corporations because it pertains to the way they handle their earnings and shareholder distributions, differing from how partnerships and sole proprietorships manage their profits.

Retained Earnings