The term retained earnings refers to:
A) earned income withheld by the government.
B) profits held back by a business for investment or other purposes.
C) wages withheld from employees by businesses for Social Security contributions.
D) the unspent earnings of all households, businesses, and government units combined.

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of net income that a company decides to keep rather than distribute to its shareholders as dividends. These funds are often used for reinvestment in the business, paying off debt, or other purposes deemed necessary by the company's management.

The Term Retained Earnings Refers To