For items select the appropriate section of the balance sheet in which the item would be reported.
-Cumulative profits retained by the company since operations began.
A) Long-term Investments
B) Property, Plant, & Equipment
C) Current Liabilities
D) Long-term Liabilities
E) Shareholders' Equity

Question

Quizplus · Accepted Answer

Cumulative profits retained by the company since operations began are reported in the Shareholders' Equity section of the balance sheet. This is because retained earnings represent the portion of net income that was not distributed to shareholders as dividends but was instead retained by the company to be reinvested in its core business or to pay debt.

For Items Select the Appropriate Section of the Balance Sheet