Retained earnings enhance the capacity of the business to absorb unexpected losses. Options: A . &nbsp True B . &nbsp False C . &nbsp not important when determining dividends D . &nbsp the cumulative earnings of the company after dividends

Retained earnings enhance the capacity of the business to absorb une

Question -

Retained earnings enhance the capacity of the business to absorb unexpected losses.

Options:

A . True

B . False

C . not important when determining dividends

D . the cumulative earnings of the company after dividends

Answer: Option A
:
A

True. Retained earnings enhance the capacity of the business to absorb unexpected losses.

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