Retained earnings is a ___________ source of funds available to an organisation.

Temporary

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Permanent

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Higher

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Both a and b

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Solution

The correct option is B Permanent
A part of the net profit that is usually kept for use in the future is known as retained earnings. Retained earnings are a permanent source of funds available to the organisation as it is the amount that has been retained from the net earnings by the organisation and can be flexibly used.

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Similar questions

Retained earnings is a temporary source of funds available to an organization.

Discuss the merits and demerits of retained earnings as a source of business finance.

(a) Discuss any three characteristics of debentures.

(b) Discuss any three limitations of retained earning as a source of Finance.

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