The retained earnings of a corporation is ________.
A) internally generated equity that is earned by profitable operations that is not distributed to stockholders
B) externally generated equity that is contributed by shareholders
C) externally generated equity that is acquired from banks and other creditors
D) internally generated equity that is received from employee stock purchases

Question

Quizplus · Accepted Answer

Retained earnings refers to the amount of profits earned by a corporation that are not distributed to stockholders as dividends, but are instead kept within the company as internally generated equity.

The Retained Earnings of a Corporation Is ________