Retained earnings are
A) the same as net profit.
B) interest earned on bond investments.
C) nontaxable income.
D) a form of equity financing.
E) the portion of the profit paid to stockholders.

Question

Quizplus · Accepted Answer

Retained earnings represent the portion of net income that a company retains rather than distributing it to shareholders as dividends. This reinvested profit is used for the company's growth and development, making it a form of equity financing.

Retained Earnings Are