Retained earnings represents the cumulative amount of net income earned over the life of the company that has not been distributed to stockholders as dividends.

Question

Quizplus · Accepted Answer

Retained earnings are the portion of a company's profits that are kept by the company rather than distributed as dividends to shareholders. It represents the cumulative amount of net income earned over the life of the company that has not been distributed to stockholders as dividends.

Retained Earnings Represents the Cumulative Amount of Net Income Earned