The amount of stockholders' equity that the corporation has earned through profitable operation of the business and has not given back to stockholders is:

Question

Quizplus · Accepted Answer

Retained earnings represent the amount of profit earned by a corporation that has not been distributed to shareholders as dividends. It is a part of stockholders' equity and helps to increase the value of the corporation. The other options, such as outstanding stock, legal capital, and treasury stock, do not represent the portion of earnings that have been retained by the corporation.

The Amount of Stockholders' Equity That the Corporation Has Earned