Which of the following statements is true?
A)Retained earnings is an asset.
B)Retained earnings has a debit balance for a successful corporation.
C)Retained earnings represents the future dividend liability of the company.
D)Retained earnings represents the profit that has been earned by the company,less any dividends declared since the first day of operations.

Question

Quizplus · Accepted Answer

Retained earnings represent the profit that has been earned by the company, less any dividends declared since the first day of operations. Retained earnings is a component of stockholders' equity and has a credit balance. It is not a current asset and does not represent future dividend liability.

Which of the Following Statements Is True