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प्रश्न
What are retained earnings?
What is retained earnings?
What is ploughing back of profits?
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उत्तर १
- Retained profits are also known as ploughing back of profits, self-financing, or internal financing.
- Because retained profits belong to shareholders, they are considered ownership funds.
उत्तर २
Generally, the profit the company earns during a financial period is paid out to its shareholders as dividends. However, sometimes a portion of the company’s profit is retained, i.e., not distributed as a dividend. It is reinvested in the business. This is known as retained earnings or ploughing back of profit.
Notes
Students should refer to the answer according to their questions.
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संबंधित प्रश्न
Answer the question.
Discuss three advantages of plowing hack of profit, from the company’s point of view.
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.
Find the odd one.
Answer in one sentence.
What are retained earnings?
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.
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.
Discuss the disadvantages of retained profits as a source of finance.
