The term "Retained Earnings" is best explained by which of the following statements?
A) Money set aside for the redemption of bonds.
B) A measure of capital generated through operating activities.
C) Cash retained in a separate bank account designated for emergency uses.
D) The difference between total revenue and total expenses in an accounting perioD.As a corporation generates earnings, equity is increased in the retained earnings account. In a proprietorship or partnership, earnings increase the owner(s) 's capital account.
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