Retained earnings represents the amount of cash available for dividends.

Name: Retained earnings represents the amount of cash available for dividends.
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Quizplus · Accepted Answer

Retained earnings represent the portion of net income that a company keeps after paying dividends to shareholders. It is not the amount available for dividends, rather it is the amount accumulated over time from profits that have not been distributed as dividends.

Retained Earnings Represents the Amount of Cash Available for Dividends