Which of the following best describes the term "retained earnings" of a company?
A)The amount of total profits earned by a company since it began operations.
B)The amount of claim that the owners have on the assets of the company.
C)The future economic resources of a company.
D)The accumulated net income of a company that has not been distributed to owners in the form of dividends.

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of a company's net income that has not been distributed to shareholders as dividends and has instead been kept in the company for future use. It represents the accumulated profits of the company since its inception that have not been paid out to shareholders.

Which of the Following Best Describes the Term "Retained Earnings