Retained earning is classified as ______.

revenue

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owner's fund

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assets

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liabilities

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Solution

The correct option is A owner's fund
Profits earned in the business is finally transferred to owners capital account. Retained earning is part of the profit which is retained in the business for future expansion. Hence is a part of owners fund.

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Retained earning is classified as ______.

The correct option is A owner's fundProfits earned in the business is finally transferred to owners capital account. Retained earning is part of the profit which is retained in the business for future expansion. Hence is a part of owners fund.

The correct option is A owner's fund
Profits earned in the business is finally transferred to owners capital account. Retained earning is part of the profit which is retained in the business for future expansion. Hence is a part of owners fund.