The amount of earnings not paid as a dividend is ____.

Question

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Earnings not paid as a dividend are retained earnings, which are accumulated in the balance sheet under shareholder's equity as a component of retained earnings. It represents the portion of net income that has been kept within the company instead of being distributed as dividends. Option A is not always true as the company may use the money for other purposes. Option B is incorrect since the retained earnings are not current income, they are accumulated earnings. Option D is incorrect as retained earnings are not reported in the income statement.

The Amount of Earnings Not Paid as a Dividend Is