Answered: Retained earnings refers to Group of…

Retained earnings refers to Group of answer choices Cash and other assets The amount of net income retained in the corporation Common stock that the firm can distribute as dividends None of

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 2QTD

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Question

Retained earnings refers to

Group of answer choices

Cash and other assets

The amount of net income retained in the corporation

Common stock that the firm can distribute as dividends

None of the other choices are correct.

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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