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a. It is the net profit of the period. b. It is the net profit kept in the business after owner’s drawings. c. It is the amount of surplus cash in the business. d. It is the amount of profit the owner can take out of the business.
Retained earning are the accumalated total of Profit/(Loss) less paid dividened since it incorporation and therefore none of the option in the above question seems to be correct.
Retained earnings represents the corporation's cumulative earnings that have not been distributed to its stockholders SO THERE IS NO RIGHT ANSWER NOTE : A negative amount of retained earnings is reported as deficit or accumulated deficit.
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