Retained earnings represents the amount of cash available for dividends.

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Tiffany Rondon · Accepted Answer

Final Answer : False, Explanation :  Retained earnings represents the amount of profit accumulated by a company over time that has not been distributed as dividends to shareholders. Retained earnings represent the cumulative amount of net income earned by a company, less any dividends paid. It is not the amount of cash available for dividends, but rather the amount that can potentially be distributed as dividends after taking into consideration other factors such as future investment needs and financial obligations.

Retained earnings represents the amount of cash available for dividends.

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