Retained profits can best be described as:
A) cash receipts minus expenses after adjustments.
B) net profit minus expenses after adjustments.
C) undistributed profits.
D) net profit minus cash disbursements after adjustments.

Question

Quizplus · Accepted Answer

Retained profits refer to the portion of a company's net income that is not distributed as dividends to shareholders, but rather is kept or "retained" within the business for various purposes such as reinvestment, debt reduction, or future expansion plans. Therefore, retained profits are undistributed profits.

Retained Profits Can Best Be Described As