Question

The portion of a company's profits that are kept by the company rather than distributed to the stockholders as cash dividends is referred to as:

Answer 1

Retained Earnigs

Step-by-step explanation:

The profits of a company could be paid to the stockholders, which is called dividens, or it could be kept by the company to be used later, which is called Retained Earnings.

Exist an account in the Equity part of the Balance Sheets that shows the total value of retained earnings each year.