The sum of all profits and losses,less all dividends paid since the beginning of the business is called:
A) liabilities.
B) retained earnings.
C) net income.
D) tax liability.

Question

Quizplus · Accepted Answer

The sum of all profits and losses, less all dividends paid since the beginning of the business is called retained earnings. It is a part of owner's equity and represents the accumulated profits of the business that have not been distributed to the owners in the form of dividends. It is not the same as net income, which is the difference between total revenues and total expenses in a given period of time, such as a year. Liabilities represent amounts owed to creditors and tax liability is the amount of taxes owed to the government.

The Sum of All Profits and Losses,less All Dividends Paid