Retained earnings reflect:Question 4Answera.The total debt owed by the companyb.The market value of the company's common stockc.The initial investment made by ownersd.Profits earned by the company over time
Question
Retained earnings reflect:Question 4Answera.The total debt owed by the companyb.The market value of the company's common stockc.The initial investment made by ownersd.Profits earned by the company over time
Solution
d. Profits earned by the company over time
Retained earnings are the portion of a company's profit that is held or retained and saved for future use. Retained earnings could be used for funding an expansion or paying dividends to shareholders at a later date. This does not reflect the total debt owed by the company, the market value of the company's common stock, or the initial investment made by owners.
Similar Questions
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