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Question

Which of the following best describes retained earnings?

Accepted Answer

Retained earnings represent the cumulative net profits of a firm since inception, minus cumulative dividends paid to common stockholders.

Answer

All of these answers.

Answer

None of these answers.

Answer

Retained earnings represent the cumulative net profits a firm since inception.

Answer

Retained earnings represent the sum total of cash obtained from the sale of common stock to investors.

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