Asked by
Sumaiya Razak
on Nov 15, 2024Verified
Retained earnings are
A) the shareholders' claim on total assets.
B) equal to cash.
C) equal to revenues.
D) the amount of net income kept in the corporation for future use.
Retained Earnings
The accumulated portion of net income that a company elects to keep, rather than distribute to shareholders as dividends.
Future Use
Refers to resources or assets that are intended to be utilized in upcoming periods, not immediately.
- Understand the critical components and value of the statement of changes in equity.
Verified Answer
JL
Learning Objectives
- Understand the critical components and value of the statement of changes in equity.