Discussion
The funds available with a company after paying all claims including tax and dividend is called
Answer: D
The funds available with a company after paying all claims, including tax and dividend, are its retained earnings. Retained earnings are the part of profit after tax that is not distributed as dividend and is ploughed back into the business as an internal source of finance.
Net profit is the figure before the dividend has been deducted, and net operating profit is the profit before interest and tax. Capital profit arises from the sale of fixed assets or the issue of shares at a premium, not from trading, so neither fits the description of what is left after all claims.
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