Retained earnings are a component of contributed equity.

Here's why:

1. Retained earnings are the portion of a company's net income which is kept by the company instead of being paid out as dividends to shareholders.

2. This money is reinvested back into the company for growth reasons, used to pay off debt, or held to be used at a later date.

3. In the context of financial accounting, retained earnings are reported in the shareholders' equity section of the balance sheet.

4. Contributed equity refers to the total value of the shares that shareholders have bought directly from the company.

5. Therefore, retained earnings, being part of the shareholders' equity, are a component of contributed equity.

Question

Retained earnings are a component of contributed equity.

Here's why:

1. Retained earnings are the portion of a company's net income which is kept by the company instead of being paid out as dividends to shareholders.

2. This money is reinvested back into the company for growth reasons, used to pay off debt, or held to be used at a later date.

3. In the context of financial accounting, retained earnings are reported in the shareholders' equity section of the balance sheet.

4. Contributed equity refers to the total value of the shares that shareholders have bought directly from the company.

5. Therefore, retained earnings, being part of the shareholders' equity, are a component of contributed equity.

Knowee AI · Accepted Answer

Retained earnings are a component of contributed equity.

Here's why:

1. Retained earnings are the portion of a company's net income which is kept by the company instead of being paid out as dividends to shareholders.

2. This money is reinvested back into the company for growth reasons, used to pay off debt, or held to be used at a later date.

3. In the context of financial accounting, retained earnings are reported in the shareholders' equity section of the balance sheet.

4. Contributed equity refers to the total value of the shares that shareholders have bought directly from the company.

5. Therefore, retained earnings, being part of the shareholders' equity, are a component of contributed equity.

Retained earnings are a component of:Retained earnings are a component of:Question 5Answera.comprehensive income.b.contributed equity.c.other equity.d.reserves.