Question

Retained earnings is: Question 63 options:

A) a corporate asset
B) part of owners' equity
C) a corporate asset minus current liabilities
D) long-term debts plus current assets

Answer 1

Retained earnings is part of owners' equity in a company and represents the accumulated net income that has been retained in the business after paying dividends to shareholders.

Step-by-step explanation:

Retained earnings is part of owners' equity in a company.

It represents the accumulated net income that has been retained in the business after paying dividends to shareholders.

Retained earnings increase when a company generates profits and decrease if there are net losses or dividends are paid out.