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Which of the following is a synonym of “Undistributed Profits” ?
Savings of private corporate sector
Reserves and Surplus
Retained Earnings
All of these
Let’s break down the terms for “Undistributed Profits”:
- Savings of private corporate sector just means the profits companies keep instead of handing out as dividends. They save it for growth, emergencies, or future projects.
- Reserves and Surplus sit on a company’s balance sheet. Basically, it’s the pool of profits set aside for things like expansions, unknown risks, or bonuses.
- Retained Earnings is a bookkeeping way to say profits *not* mailed out to shareholders. These profits are instead hoarded for later use.
- All of these—yeah, these words are used interchangeably in corporate finance and they all connect back to the profits the company keeps.
So, the correct answer is:
Option:4- All of these
By: santosh ProfileResourcesReport error
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