Retained earnings are A an indication of a company's liquidity B the same as cash in the bank C not important when determining dividends D the cumulative earnings of the company after dividends
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Option A: Retained earnings are not directly an indication of a company's liquidity. Liquidity refers to the ability to convert assets into cash quickly. Option B: Retained earnings are not the same as cash in the bank. Retained earnings are accumulated profits Show more…
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