Question

The process of retaining a part of the net profits over the years and reinvesting the same is call​

Answer 1

Answer:

Retained earnings are an important concept in accounting. The term refers to the historical profits earned by a company, minus any dividends it paid in the past. The word “retained” captures the fact that, because those earnings were not paid out to shareholders as dividends, they were instead retained by the company. For this reason, retained earnings decrease when a company either loses money or pays dividends, and increase when new profits are created.

Answer 2

Retained earnings is the correct answer