In a corporation’s financial statements, earned surplus is also recognized as:
A.
gross profit
B.
operating income after payment of interest expense
C.
earnings retained after payment of dividends to shareholders
D.
net income
The Answer Is:
C
This question includes an explanation.
Explanation:
earnings retained after payment of dividends to shareholders. The other choices are clearly incorrect. Earned surplus is also referred to as retained earnings.
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