What are Retained Earning???
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Retained earnings refer to the portion of the earnings left with the company after the distribution of dividend to its shareholders. ... A company cannot pay dividends or retain earnings in the case of net loss in any financial year.
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Explanation:
Retained earnings refer to the portion of the earnings left with the company after the distribution of dividend to its shareholders. Retention of earnings is from the profits of the business for a financial year. A company cannot pay dividends or retain earnings in the case of net loss in any financial year
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