G6A is a major corporation that has had an extremely profitable year. G6A decides to keep some of its profits to reinvest into new machinery. This is known as ________.

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of net income that a company decides to keep rather than distribute to shareholders as dividends. In this case, G6A is keeping some of its profits to reinvest in new machinery, which is an example of retained earnings.

G6A Is a Major Corporation That Has Had an Extremely