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Examveda

Earnings that are not paid as dividends to stockholders and have cumulative amount are classified as

A. non-paid earnings

B. common earnings

C. retained earnings

D. preferred earnings

Answer: Option C

Solution(By Examveda Team)

Earnings that are not paid as dividends to stockholders and have cumulative amount are classified as retained earnings. Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to investors. This amount is adjusted whenever there is an entry to the accounting records that impacts a revenue or expense account.

This Question Belongs to Commerce >> Financial Management

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