Advertisements
Advertisements
Question
What are retained earnings?
Solution
- Retained profits are also known as ploughing back of profits, self-financing or internal financing.
- As the retained profits belong to the shareholders, they are considered ownership funds.
RELATED QUESTIONS
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.
Find the odd one.
Answer in one sentence.
What are retained earnings?
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.
Explain any four disadvantages of Retained Earnings.
What are retained profits called "self financing"?
What are retained profits?
Discuss the advantages of retained profits as a source of finance.
