The ________ account on the balance sheet shows profits that the firm has reinvested in the company.
A) retained earnings
B) stockholder's equity
C) intangible assets
D) notes payable

Question

Quizplus · Accepted Answer

Retained earnings represent the portion of profits that a company has kept and reinvested into the business rather than distributing as dividends to shareholders. It is listed under the stockholders' equity section of the balance sheet. Intangible assets are separate from retained earnings and are listed as a separate asset category. Notes payable are liabilities and are listed separately from retained earnings.

The ________ Account on the Balance Sheet Shows Profits That