_____ measures the net assets generated by a firm from operations exceeding dividends declared.
A)Assets
B)Liabilities
C)Shareholders' equity
D)Additional Paid-in-Capital
E)Retained earnings

Question

Quizplus · Accepted Answer

Retained earnings measure the net assets generated by a firm from operations exceeding dividends declared. It is a part of shareholders' equity on the balance sheet. Option A, B and D are incorrect as assets, liabilities and additional paid-in-capital are not measures of net assets generated by a firm from operations exceeding dividends declared.

_____ Measures the Net Assets Generated by a Firm from Operations