Retained earnings are a form of equity financing.
Retained earnings are the profit which a company does not pay out in dividends, but keeps in order to reinvest in itself. These profits remain after a company pays dividends to its shareholders.
At the end of a reporting period, retained earnings are held or retained from net income and saved for future use as shareholder's equity. Retained earnings are not considered an asset for the company since it belongs to the shareholders.
Thus, the retained earnings are the net income accumulated over time and later paid to shareholders as dividends.
Hence, option C is correct.
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