Retained earnings represents:

Question

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Retained earnings represent earned capital, which is the portion of a company's profits that are kept by the company rather than distributed as dividends to shareholders. This includes profits from prior years that have not been distributed as dividends as well as current year earnings that have not yet been paid out. Retained earnings are reported on the balance sheet as part of shareholders' equity. Cash and assets are reported on the balance sheet separately, and net assets is not a recognized financial term.

Retained Earnings Represents