Q367
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
AnswerD.
preferred earnings
Answer: Option C
Solution
Answer: Option C
Solution:
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.