Which of the following best defines retained earnings?
A)They are the amounts paid out as dividends.
B)They are the amount of revenues a corporation receives for the sale of its products, minus its costs of production, as measured by its accountants.
C)They are interest paid to creditors.
D)They are profits not paid out to shareholders.

Question

Quizplus · Accepted Answer

Retained earnings are the portion of a company's profits that are not distributed as dividends to shareholders, but instead are kept by the company for various purposes such as reinvestment back into the company, debt reduction or savings for future opportunities.

Which of the Following Best Defines Retained Earnings