Retained Earnings measures the cumulative excess of _____ for the life of a firm
A)dividends over net income
B)net income over dividends
C)assets over liabilities
D)liabilities over shareholders' equity
E)shareholders' equity over liabilities

Question

Quizplus · Accepted Answer

Retained earnings represent the portion of earnings that have been retained or reinvested in the company rather than paid out as dividends. Therefore, it measures the cumulative excess of net income over dividends for the life of the firm.

Retained Earnings Measures the Cumulative Excess of _____ for the Life