Question

For years Microsoft did not pay dividends to its shareholders. Instead it held back these profits to be used for future growth or expansion. These undistributed profits are referred to as

Answer 1

These undistributed profits are refereed to as "RETAINED EARNINGS".

Retained earnings are the benefits that an organization has earned to date, less any profits or different disseminations paid to financial specialists. This sum is balanced at whatever point there is a section to the bookkeeping records that impacts an income or cost account. An extensive held profit balance suggests a fiscally solid association.

The Retained earnings balance or gathered shortage balance is accounted for in the investors' value segment of an organization's asset report.