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elena-14-01-66 [18.8K]
3 years ago
12

Retained earnings on the balance sheet?

Business
1 answer:
belka [17]3 years ago
3 0

Answer:

The answer is D. have already been reinvested in the firm

Explanation:

Retained Earning is that part of income or profit that was not distributed out as dividend.

It is retained to grow the business or make the business bigger. It is part of shareholder's equity.

Option A is wrong. It doesn't increase with operating income. It depends on dividend policy and the net profit

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