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प्रश्न
What are retained profits?
उत्तर
Retained profits refer to the profits that have not been distributed as dividends but have been kept for use in business. Profits are usually retained in the form of general reserves. A part of the profits is transferred to the reserves every year.
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संबंधित प्रश्न
What has retained earnings? Explain any two of its merits and two of its demerits.
Select the correct answer from the options given below and rewrite the statement.
Retained earnings are ______ source of financing.
Write a word or a term or a phrase that can substitute the following statement.
The policy of using undistributed profit for the business.
Correct the underlined word and rewrite the following sentence.
Retained earnings is an external source of finance.
Explain the following term/concept.
Ploughing back of profit
Study the following case/situation and express your opinion.
The Balance-sheet of a Donald Company for the year 2018-19 reveals equity share capital of Rs. 25,00,000 and retained earnings of Rs. 50,00,000.
- Is the company financially sound?
- Can the retained earnings be converted into capital?
- What type of source retained earning is?
Justify the following statement.
Retained earning is simple and cheapest method of raising finance.
What is retained earnings? Explain Determinants of retained earnings.
What are retained earnings?
Discuss the disadvantages of retained profits as a source of finance.
