The Retained Earnings account is comprised of
A)cash retained in the business.
B)cash reinvested in the business by shareholders.
C)the cumulative earnings less dividends since the inception of the corporation.
D)the earnings of the corporation for the current year.

Question

Quizplus · Accepted Answer

Retained Earnings account includes the cumulative earnings of the corporation since its inception, minus any dividends paid to the shareholders. It does not necessarily include cash in hand or current year earnings.

The Retained Earnings Account Is Comprised of