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One major component of Equity is Retained Earnings. What does Retained Earnings represent?
A If the company took all of their assets and paid off all of their liabilities, this is what would be remaining.
B This represents the amount of cash currently in the company that belongs to the owners.
C This represents the value of what the owners put into the company, when they put it in.
D This represents all of the profits (minus all of the losses), minus dividends paid out to owners, that have been kept in the company.
E This represents the amounts the company owes to the owners, plus whatever interest rate they agreed to pay.
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