Retained earnings are:
A) the value of the claim that all shareholders have against the assets of the company.
B) the sum of all the earnings available to common shareholders for the history of the company less any common dividends that have been paid out.
C) cash available to be paid out to common shareholders.
D) the equity capital of the corporation.

Question

Quizplus · Accepted Answer

Retained earnings represent the sum of all net income earned by a company over its history, after subtracting any dividends paid to shareholders. This means it's essentially the portion of profits not distributed to shareholders and reinvested in the business or kept as a reserve for future use.

Retained Earnings Are