One major component of Equity is Retained Earnings. What does Retained Earnings represent? Group of answer choices If the company took all of their assets and paid off all of their liabilities, this is what would be remaining. This represents the amount of cash currently in the company that belongs to the owners. This represents the value of what the owners put into the company, when they put it in. This represents all of the profits (minus all of the losses), minus dividends paid out to owners, that have been kept in the company. This represents the amounts the company owes to the owners, plus whatever interest rate they agreed to pay.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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One major component of Equity is Retained Earnings. What does Retained Earnings represent? Group of answer choices If the company took all of their assets and paid off all of their liabilities, this is what would be remaining. This represents the amount of cash currently in the company that belongs to the owners. This represents the value of what the owners put into the company, when they put it in. This represents all of the profits (minus all of the losses), minus dividends paid out to owners, that have been kept in the company. This represents the amounts the company owes to the owners, plus whatever interest rate they agreed to pay.
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