Which of the following describes retained earnings?
A)Externally generated capital that is raised from banks and other creditors
B)Internally generated capital that results from employees' contributions
C)Internally generated capital that results from profitable business transactions
D)Externally generated capital that is contributed by shareholders

Question

Quizplus · Accepted Answer

Retained earnings are the portion of a company's profits that are not distributed as dividends but are kept within the company to reinvest in the business or pay off debt.

Which of the Following Describes Retained Earnings