Question

Q1 Retained earnings is also known as:
(a) Residual owners of the company
(b) Loan capital of the company
(c) Short term capital of the company
(d) Ploughing back of profits​

Answer 1

Answer:

your answer is

Explanation:

class 9th

Answer 2

Answer:

d) Ploughing back of profits

Explanation:

Retained Earnings is also known as ploughing back of profits.

Retained Earnings :

A company generally does not distribute all its earnings amongst the Shareholders as dividends. A portion of net earnings may be retained in business for use in future. This is known as Retained earnings. It is a source of internal financing or self financing or ploughing back of profits. The profit available for ploughing back in an organisation depends on many factors like net profits, Dividend policy and age of the organisation.

Retained earnings is a long term capital , owner's fund and also internal source of the business.

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