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Retained earnings represents: cash that is available for dividends. the total ne

ID: 2422759 • Letter: R

Question

Retained earnings represents:

cash that is available for dividends.

the total net income of the firm since its beginning.

cumulative net income of the firm since its beginning that has not been distributed to its stockholders in the form of dividends.

net income plus gains (or minus losses) on treasury stock transactions

A.

cash that is available for dividends.

B.

the total net income of the firm since its beginning.

C.

cumulative net income of the firm since its beginning that has not been distributed to its stockholders in the form of dividends.

D.

net income plus gains (or minus losses) on treasury stock transactions

Explanation / Answer

Answer: C. cumulative net income of the firm since its beginning that has not been distributed to its stockholders in the form of dividends.

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