Retained earnings result from:
A) the sale of additional shares of stock to investors.
B) income not paid to shareholders.
C) an excess of assets over liabilities.
D) market values that exceed book values.

Question

Quizplus · Accepted Answer

Retained earnings are the portion of a company's profit that is not paid out as dividends to shareholders but instead kept for reinvestment in the business or to pay off debts. Therefore, they result from income not paid to shareholders.

Retained Earnings Result From