Profit not distributed and reinvested in the business is called
Ashare premium
Bcapital reserve
Cretained earnings
Dpaid-up capital
Answer & Solution
Correct answer: C. retained earnings
Undistributed profit that stays in the business as reinvestment is labelled retained earnings.
Keep practising Declaration and Payment of Dividend
Browse all Declaration and Payment of Dividend questions for CA Inter, or explore more Law topics.
Related questions
Dividends on preferred shares must be paid before those onThe most common form of dividend payment isSince Budget 2020-21, what has happened to India's DDT?A payout ratio above 100% means the company paidDeclaring a dividend creates what in the company's books?Only holders registered on which date receive the dividend?On and after the ex-dividend date, a buyer of the shareDividends paid before the AGM and final accounts are