Question

Retained earnings represents: Multiple Choice Amount of cash available for paying dividends. Total assets minus total liabilities. Net income minus dividends for the current year. All net income, less all dividends, since the company began operations.

Answer 1

Answer:

All net income, less all dividends, since the company began operations.

Explanation:

Retained Earnings are the retained profits that the company keeps with itself, for meeting any case of emergency or for growing company and thus, meeting the growing expenses.

Each year when company earns profits and then, it distributes its profits in the form of dividends, the balance remaining after paying the dividends is added to retained earnings.

Thus, the entire balance of these kind of profits not paid anywhere else and also not utilized is called retained earnings.