Retained earnings are a component of:
Question
Retained earnings are a component of:
Solution
Retained earnings are a component of a company's shareholders' equity. This is found on the company's balance sheet under the equity section. Retained earnings are the portion of a company's net income which is kept or 'retained' by the company instead of being paid out as dividends to shareholders. The money is usually used for reinvestment back into the company, such as research and development, equipment upgrades, or debt repayment.
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