Quiz – T/F: Retained earnings is the actual cash that the firm has generated through operations
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition and 10th Edition
Retained earnings is the actual cash that the company has earned earned through operations less the cash that has been paid out to stockholders as dividends. If the firm has enough retained earnings, it can buy assets and pay form them with cash from retained earnings.
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