Team Shirts has a balance in retained earnings of $15,000.This amount is ________.

Question

Quizplus · Accepted Answer

Retained earnings represent the amount of net income that has been kept by the company, rather than distributed as dividends. Therefore, Option C is correct. Option A and D are incorrect because retained earnings do not necessarily match the amount of cash in the Cash account or the amount received from the sale of stock. Option B is incorrect because retained earnings are not necessarily available for dividends; the company may choose to retain earnings for future investment or other purposes.

Team Shirts Has a Balance in Retained Earnings of $15,000