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The accumulated net income earned since the inception of the corporation and not yet paid to shareholders is referred to as _____

User Jengerer
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Answer:

The correct answer is Retained earnings.

Step-by-step explanation:

The retained earnings or retained earnings are those benefits that the company has earned and that instead of sharing among the shareholders, they decide to invest in the company itself.

These profits can be used to achieve greater growth of the company, such as increasing the workforce, improving the budget dedicated to research or obtaining a liquidity fund that allows the company to remedy possible emergency situations in the future.

Sometimes they are very useful for the company, since they allow the company to finance itself with its own money, thus avoiding financial loans that can have an important cost.

User Funkizer
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