Which of the following correctly describes retained earnings?
A) It is the cumulative earnings of a company.
B) It represents the investments by stockholders in a company.
C) It equals total assets minus total liabilities.
D) It is the cumulative earnings of a company less dividends declareD.Retained earnings are the cumulative earnings not distributed to the owners.That is the cumulative net income less dividends declared.
Correct Answer:
Verified
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