Retained earnings on the balance sheet represents
A. net profits after taxes.
B. cash.
C. net profits after taxes minus preferred dividends.
D. the cumulative total of earnings reinvested in the firm.
Answer:D
Retained earnings on the balance sheet represents
A. net profits after taxes. B. cash. C. net profits after taxes minus preferred dividends. D. the cumulative total of earnings reinvested in the firm.