Final answer:
Retained earnings are the net earnings a company keeps after paying out dividends to shareholders, which can be reinvested in the business for growth or debt repayment.
Step-by-step explanation:
The definition of retained earnings is the amount of net earnings left in a company after dividends have been paid to shareholders. Therefore, the correct answer is 1) Accumulative earnings minus dividends. Retained earnings are a critical component of a company's equity and are often reinvested into the company to fuel growth, pay down debt, or undertake new projects.