The Term "Retained Earnings" Is Best Explained by Which of the Following

Multiple Choice

The term "Retained Earnings" is best explained by which of the following statements?

A) Money set aside for the redemption of bonds.
B) A measure of capital generated through operating activities.
C) Cash retained in a separate bank account designated for emergency uses.
D) The difference between total revenue and total expenses in an accounting perioD.As a corporation generates earnings, equity is increased in the retained earnings account. In a proprietorship or partnership, earnings increase the owner(s) 's capital account.