Question

Retained earnings: Group of answer choices

Can only be appropriated by setting aside a cash fund.
All of the listed choices. Represent an amount of cash available to pay shareholders.
Generally, consists of a company's cumulative net profit less any net losses and dividends declared since its inception.

Answer 1

Retained earnings refers to:

D. The net losses and dividends declared since its inception of a company's cumulative net profit.

Step-by-step explanation:

Retained earnings are referred as :

• The overall earning the company have made till the present date.
• This earning excludes the dividend money and the money of the investors distributed.
• Whenever new records are made for the company this dividend money is readjusted.
• This leftover money has an impact on the account related to the expense and revenue.
• The retained earnings are built of the total income amount which has been given by a business after paying off the dividend to the shareholders.

So, here correct option is

D. The net losses and dividends declared since its inception of a company's cumulative net profit.