The funds that are kept by the company out of profits and after dividends are paid are called which of the following?
A) share equity
B) investor earnings
C) retained earnings
D) secondary earnings

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of net income that a company keeps after paying dividends to its shareholders. These earnings are kept by the company and can be reinvested in the business or used for other purposes such as paying off debt or acquiring other companies. The other options - share equity, investor earnings, and secondary earnings - do not accurately describe the funds that are kept by the company out of profits.

The Funds That Are Kept by the Company Out of Profits