If a company reports retained earnings of $22.4 million on its balance sheet, it will also report $22.4 million in cash.

Question

Quizplus · Accepted Answer

Retained earnings represent the cumulative amount of net income that a company has decided to keep and reinvest in the business rather than distribute to shareholders as dividends. This figure does not directly correlate to the amount of cash available, as retained earnings can be used for various purposes, including purchasing assets, reducing liabilities, or other investments.

If a Company Reports Retained Earnings of $22