Earnings that are reinvested in a corporation are called
A)retained earnings.
B)surplus earnings.
C)retention capital.
D)additional capital.
E)collected capital.

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of earnings that a corporation chooses to keep and reinvest in the company rather than paying out as dividends to shareholders. This term is commonly used in financial accounting and reporting.

Earnings That Are Reinvested in a Corporation Are Called