The Term "Retained Earnings" Is Best Explained by Which of the Following

question 75

Multiple Choice

The term "Retained Earnings" is best explained by which of the following statements?

• A)Money set aside for the redemption of bonds.
• B)A measure of capital generated through operating activities.
• C)Cash retained in a separate bank account designated for emergency uses.
• D)The difference between total revenue and total expenses in an accounting perioD.As a corporation generates earnings, equity is increased in the retained earnings account. In a proprietorship or partnership, earnings increase the owner(s)'s capital account.

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A personality trait characterized by organization, dependability, and a strong sense of duty.

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