Retained earnings represent the cumulative total of all earnings retained and reinvested in the firm since its inception.

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Retained earnings are the portion of a company's net income that is not paid out as dividends but is instead kept in the company's earnings account and reinvested in the business. The cumulative total of all such earnings since the company's inception is referred to as retained earnings.

Retained Earnings Represent the Cumulative Total of All Earnings Retained