Retained earnings is:_______.
a. always equal to the amount of cash that the corporation has generated from operations.
b. a part of the paid-in capital of the corporation.
c. a part of the stockholders' claim on the total assets of the corporation.
d. closed at the end of each accounting period.

After deducting all of a company's indirect and direct expenses, tax payments, and dividends payable to shareholders, the remaining profit is known as retained earnings.

Retained earnings boost a company's working capital structure and enhance its financial situation, which raises the fair value of its shares. Maintaining your company's financial performance boosts your balance sheet, which impacts shareholder equity and the value of the related stock.

Retained earnings are shown as the accumulated income from the previous year subtracting the dividends distributed to shareholders on the balance sheet at the completion of each accounting period.

Therefore, option D closed at the end of each accounting period is appropriate.

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Retained earnings is:_______. a. always equal to the amount of cash that the corporation has generated from operations. b. a part of the paid-in capital of the corporation. c. a part of the stockholders' claim on the total assets of the corporation. d. closed at the end of each accounting period.

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What are retained earnings?

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Retained earnings is:_______.
a. always equal to the amount of cash that the corporation has generated from operations.
b. a part of the paid-in capital of the corporation.
c. a part of the stockholders' claim on the total assets of the corporation.
d. closed at the end of each accounting period.