The portion of net income that the company has kept over a period of years is called:
A) common stock.
B) retained earnings.
C) revenue.
D) gross profit.

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of net income that a company has kept over a period of years. This is the amount that the company has not distributed as dividends, and instead has chosen to reinvest back into the business. The other options are not correct: 
A) Common stock refers to the portion of a company owned by shareholders. 
C) Revenue refers to the total income earned by a company from its business activities. 
D) Gross profit refers to the total revenue earned by a company minus the cost of goods sold.

The Portion of Net Income That the Company Has Kept