A. Undistributed Profits
B. Excess of income over expenditure
C.
Dividends paid to shareholders
D. Total profits of a company
Ans. (A)
Undistributed Profits
Explanation:
As far as the private corporate sector is concerned, retained profits adjusted for non operating surplus/ deficit is considered as its Net Saving. Retained profits are those which are ploughed back into business after making commitments to depreciation provision for various fixed assets, debts (in the form of interest payments), government (tax provisions) and to share-holders (dividends). Non-operating surplus/ deficit (NOP) comprises (a) profit/ loss on account of sale of fixed assets, investments, etc., (b) Provisions no longer required written back, (c) insurance claims realized and (d) income or expenditure relating to the previous years and such other items of non-current nature.
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