Retained earnings are
A) always equal to the amount of cash that the corporation has generated from operations.
B) a part of the contributed capital of the corporation.
C) a part of the shareholders' claim on the total assets of the corporation.
D) closed at the end of each accounting period.

Question

Quizplus · Accepted Answer

Retained earnings represent the cumulative amount of net income that a corporation has retained, rather than distributed as dividends, and are part of the shareholders' equity, reflecting their claim on the corporation's assets.

Retained Earnings Are