Retained earnings: Group of answer choices

Can only be appropriated by setting aside a cash fund.

All of the listed choices. Represent an amount of cash available to pay shareholders.

Generally, consists of a company's cumulative net profit less any net losses and dividends declared since its inception.

Question

Business

Bernard Wallace

29 January, 23:06

Retained earnings: Group of answer choices

Can only be appropriated by setting aside a cash fund.

All of the listed choices. Represent an amount of cash available to pay shareholders.

Generally, consists of a company's cumulative net profit less any net losses and dividends declared since its inception.

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Answers (1)

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Frankfurter · Answer 1

Retained earnings refers to:

D. The net losses and dividends declared since its inception of a company's cumulative net profit.

Explanation:

Retained earnings are referred as:

The overall earning the company have made till the present date. This earning excludes the dividend money and the money of the investors distributed. Whenever new records are made for the company this dividend money is readjusted. This leftover money has an impact on the account related to the expense and revenue. The retained earnings are built of the total income amount which has been given by a business after paying off the dividend to the shareholders.

So, here correct option is

D. The net losses and dividends declared since its inception of a company's cumulative net profit.