Retained earnings are ________.

Question

Quizplus · Accepted Answer

Retained earnings are the accumulated net income of a company since the day it began, minus any dividends paid to shareholders. Therefore, option A is the correct answer. Option B is incorrect, as it states that retained earnings are increased by net losses, which is not true. Option C is partially correct, as dividends paid to shareholders decrease retained earnings, but it doesn't directly increase them. Option D is incorrect, as retained earnings are not increased by the sale of additional shares of stock.

Retained Earnings Are ________