Retained earnings are kept in the business in the form of cash only.

Name: Retained earnings are kept in the business in the form of cash only.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

Retained earnings represent the cumulative amount of net income earned by a company that is retained by the company rather than distributed to its shareholders as dividends. These earnings can be used for reinvestment in the business, such as purchasing assets, reducing debt, or funding new projects, and are not held solely in the form of cash.

Retained Earnings Are Kept in the Business in the Form