Retained earnings is:
A)a corporate asset
B)part of owners' equity
C)a corporate asset minus current liabilities
D)long-term debts plus current assets

Question

Quizplus · Accepted Answer

Retained earnings refers to the portion of a company's profits that are kept by the company instead of being distributed as dividends to shareholders. As such, retained earnings are considered part of owners' equity. They represent the amount of money that has been earned by the company over time, but not distributed to shareholders, either because the company has chosen to reinvest its profits in the business or because it has not yet declared dividends. Retained earnings are an important source of funding for companies, as they can be used to finance growth or pay down debt.

Retained Earnings Is