Question 5 2 pts Retained earnings on the balance sheet repr

Question 5 2 pts Retained earnings on the balance sheet represents the O net profit after taxes minus preferred dividends cumulative total of all earnings reinvested in the firm O net profit after taxes O amount of proceeds in excess of the par value received from the original sale of common stock

Solution

Answer is cumulative total of all earnings reinvested in the firms.

Explanation:

The retained earnings balance represents the total of net earnings earned in all the previous years which has been reinvested in the business net of total dividends of all those years.