Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?
A)owners' equity
B)net worth
C)net earnings
D)retained earnings
E)current equity

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of net income that is retained by the company rather than distributed to its shareholders as dividends. This amount is reinvested into the company, either to pay off debt or to fund its growth.

Which of the Following Terms Equals the Total Profits of a Company