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प्रश्न
What are retained profits?
Briefly explain the concept of retained profits.
Briefly explain the following source of finance.
Retained profits
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उत्तर
Retained profits refer to the profits that have not been distributed as dividends but have been kept for use within the business. These profits are usually retained in the form of general reserves or retained earnings, which can be used for various purposes, including business expansion, purchasing new assets, research and development, debt repayment, or as a financial cushion during economic downturns.
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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.
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.
What are retained earnings?
Discuss the disadvantages of retained profits as a source of finance.
