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Profits kept in the business since it started, rather than paid out, are called:
AReduced earnings
BReserved earnings
CReceived earnings
DRetained earnings
Answer & Solution
Correct answer: D. Retained earnings
1. They come from profitable operations.
2. They stay inside the firm.
3. They are retained earnings.
_Source: OpenStax Introduction to Business, Chapter 14, Using Financial Information and Accounting._
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