The ratio which shows the proportion of profits retained in the business out of the current year's profits is
A)retained earnings ratio.
B)payout ratio
C)earnings per share.
D)price earnings ratio

Question

Quizplus · Accepted Answer

The retained earnings ratio shows the proportion of profits retained in the business out of the current year's profits, indicating how much profit is reinvested in the business rather than distributed to shareholders as dividends.

The Ratio Which Shows the Proportion of Profits Retained in the Business