Which of the following would be listed in the owners' equity section of a balance sheet?
A) accounts receivable
B) cash
C) net income
D) retained earnings

Question

Quizplus · Accepted Answer

Retained earnings are a type of accumulated earnings that represent the portion of a company's profits that are not distributed as dividends to shareholders but instead are kept for reinvestment in the business. Retained earnings are listed in the owners' equity section of a balance sheet because they represent the owners' claim on the company's assets. Accounts receivable and cash are listed in the assets section of a balance sheet, while net income is typically reported on an income statement rather than a balance sheet.

Which of the Following Would Be Listed in the Owners