Retained Earnings is the amount stockholders have invested in the company.

Question

Quizplus · Accepted Answer

Retained Earnings is the portion of a company's profits that are kept by the company instead of being distributed as dividends to its shareholders. Paid-in capital, on the other hand, is the portion of a company's capital that has been contributed by shareholders in exchange for shares of stock. They are two distinct accounting concepts, and thus option B is correct.

Retained Earnings Is the Amount Stockholders Have Invested in the Company