What do you mean by ldquo Retained Earning rdquo ........

Economic Affairs Industrial sectors

What do you mean by “Retained Earning”?

The percentage of earning resulted after subtracting the losses incurred by the companies

The percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt.

The earning of companies resulted from deferring investment during high inflation scenarios

None of the above

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Explanation:

Second option is correct.
Retained earnings refer to the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt. It is recorded under shareholders' equity on the balance sheet.