The undistributed profits of a limited liability company is

Assessment: WAEC SSCE - Financial Accounting - 1995 (Objective) Subject: Financial Accounting

Question 1 Report

The undistributed profits of a limited liability company is
Answer Details
Undistributed profits of a limited liability company refers to the portion of the net profit that the company has not distributed as dividends to its shareholders. Instead, these profits are retained by the company for future use such as reinvestment in the business, expansion or to pay off debts. Therefore, the correct answer is "retained earnings".
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