Undistributed Profits of a Firm Are

Multiple Choice

Undistributed profits of a firm are

A) earnings that are used to pay dividends to shareholders.
B) earnings that are used to cover the costs of production.
C) earnings that are used to cover interest expenses of the firm.
D) profits that are paid out to owners of the firm.
E) profits that are available to be reinvested in the firm's operations.