question archive Rents Retained earnings are defined as profits

Rents Retained earnings are defined as profits

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Rents Retained earnings are defined as profits. Multiple choice question . O distributed corporate C distributed sole proprietors ' C undistributed sole proprietors ' undistributed corporate The after-tax profits that are distributed to stockholders are called dividend (one word). In order to invest later in new plants and equipment, businesses use undistributed corporate profits, or retained earnings. When considering national income, general sales taxes, business property taxes, license fees, and custom duties are all included in the account called taxes on production and imports.

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1- option d - undistributed corporate 

 

2- option c- dividend 

 

3-  retained earnings 

 

4- production 

Step-by-step explanation

1- UNDISTRIBUTED CORPORATE PROFITS: Commonly termed retained earnings, these are corporate profits that are neither paid as corporate profits taxes nor paid to shareholders as dividends. Undistributed corporate profits are important for the derivation of personal income from national income.

 

2-The money left over is called the "profit after tax" (PAT). When a company distributes its PAT among its shareholders, such distributions are known as "dividends

 

3- Any after-tax profits that are not distributed to shareholders are saved, or retained, by corporations to be invested later in new plants and equipment. Undistributed corporate profits are also called retained earnings.