Retained earnings is obtained by subtracting
A) any dividends from net income.
B) net income from EBIT.
C) taxes from EBIT.
D) interest expense from EBT.
E) EBIT from CGS

Question

Quizplus · Accepted Answer

Retained earnings are the portion of a company's profits that are not distributed as dividends but are kept by the company to be reinvested in the business or used for other purposes. Retained earnings are obtained by subtracting any dividends paid to shareholders from the net income of the company.

Retained Earnings Is Obtained by Subtracting