RETAINED EARNINGS

 

The funds that the firm uses to internally finance growth

• Capital employed

• Current assets

• Long-term finance

• Retained profit

Money needed to function from day to day = ???

• Gross profit

• Working capital

• Dividends

• Working growtH

____ are finances that can be found inside the business such as retained profits and the owners personal savings.

• 3rd party sources

• External sources

• Dividends

• Internal sources

Retained earnings is a :

• (a) Permanent source of funds

• (b) Temporary source of funds

• (c) Fixed source of funds

• (d) Expensive source source of funds

Retained earnings is also known as:

• (a) Residual owners of the company

• (b) Loan capital of the company

• (c) Short term capital of the company

• (d) Ploughing back of profits