Which statement best describes the retained earnings

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Reference no: EM13393306

Which statement best describes the retained earnings account?

a. The retained earnings account is equal to the cash account less dividends paid.

b. Retained earnings are funds a company has chosen to reinvest in the operations of a business rather than pay out to stockholders in dividends.

c. Retained earnings represent unused cash of the firm.

d. The retained earnings account is the measurement of all distributed earnings.

Reference no: EM13393306

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