Question

Retained earnings is a source of ___________.

• A. Internal financing
• B. Ploughing back of profits
• C. Self financing
• D. All of the above

Answer 1

Answer: (D)

All of the above

Retained earnings are the funds which have been kept by the company for their future expenses out of the net earnings gained by the company over the course of business. These retained earnings can be a source of funds for internal financing, as a help in the low business turnover or self financing for the smooth functioning of the business or company.