Portion of the net earnings retained in the business for future use is known as _______.

Net profit

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Retained earnings

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Gross profit

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None of the above

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Solution

The correct option is B Retained earnings
The company or a business revolves around earning profits, for the same, it has to perform financial planning to keep the business running. Some part of the profits that are earned are usually kept for use in the future. This foresight of retaining a portion of the net earnings is known as retained earnings.

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