Match each term with the correct definition.
-retained earnings
A) efficiency
B) prosperity
C) internal financing
D) external financing
E) stability

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of net income that is kept by a company rather than distributed to its shareholders as dividends. This reinvested profit is used for internal financing, funding new projects, paying off debt, or expanding the business.

Match Each Term with the Correct Definition