Question

Write short notes on : (a) Retained earnings (b) Trade credit.

Answer 1

hi mate

here's your answer

a) Retained earnings:Retained earnings (RE) is the amount of net income left over for the business after it has paid out dividends to its shareholders. A business generates earnings that can be positive (profits) or negative (losses).

b) Trade credit:Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organisations as a source of short-term financing. It is granted to those customers who have a reasonable amount of financial standing and goodwill. There are many forms of trade credit in common use.

hope this helps you

please mark me as brainliest

Answer 2

$\huge\red{Answer :-)}$

HEY MATE HERE IS YOUR ANSWER..☺

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.

Trade credit..⚠

Trade credit means many things but the simplest definition is an arrangement to buy goods and/or services on account without making immediate cash or cheque payments. Trade credit is a helpful tool for growing businesses, when favourable terms are agreed with a business's supplier.

HOPE IT HELPS YOU..❤❤❤

KEEP ASKING..✨✨✨

BE BRAINLY..✌✌✌