Retained earnings are called self-financing.
‘Ploughing back of profits’ is also known as ______________________.
Issuing preference shares
Issuing equity shares
What are the two important sources from where the owner's funds can be obtained?
None of the above
Retained earnings and debentures
Retained earnings and issue of equity shares
Retained earnings and issue of preference shares
Retained earnings are based on the profits of an organization.
Retained earnings enhance the capacity of the business to absorb unexpected losses.
Retained earnings are
an indication of a company's liquidity
the same as cash in the bank
not important when determining dividends
the cumulative earnings of the company after dividends