All of the following statements regarding retained earnings are true except A)retained earnings represents a claim on cash. B)a debit balance in Retained Earnings indicates a deficit. C)some companies may restrict the availability of retained earnings for dividends. D)retained earnings is net income that a company retains in a business.

Question

Quizplus · Accepted Answer

Retained earnings do not represent a claim on cash; they are the accumulated net income retained in the business and not distributed as dividends.

All of the Following Statements Regarding Retained Earnings Are True