Retained earnings and cash on the balance sheet will always be equal.

Name: Retained earnings and cash on the balance sheet will always be equal.
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Question

Quizplus · Accepted Answer

Retained earnings and cash on the balance sheet represent different things. Retained earnings are the portion of a company's profits that are kept after dividends are paid out to shareholders, while cash on the balance sheet represents the actual cash or cash equivalents that the company currently holds. Therefore, the amounts may not always be equal.

Retained Earnings and Cash on the Balance Sheet Will Always