Question

Retained earnings is the amount by which ___ exceeds ___ paid over the life of the corporation.

Answer 1

Retained earnings is the amount by which profits exceed dividends paid over the life of the corporation. It represents the portion of net income that a company chooses to retain.

Step-by-step explanation:

Retained earnings is the amount by which profits exceed dividends paid over the life of the corporation.

Retained earnings represent the portion of net income that a company chooses to retain in the business rather than distribute to its shareholders. It is an important financial metric that reflects the company's profitability and its reinvestment in the business.

For example, if a corporation has earned $100,000 in profits over its lifespan and has paid $20,000 in dividends to its shareholders, the retained earnings would be $80,000 ($100,000 - $20,000).