Which statement best describes the retained earnings account? Retained earnings represent unused cash of the firm. The retained earnings account is the measurement of all distributed eamings. The retained earnings account is equal to the cash account less dividends paid. 3p Retained earnings are funds a company has chosen to reinvest in the operations of a business rather than pay out to stockholders in dividends Retained earnings represent the cumulative amount of dividends received by the owners, which represent the amount of eamings they have received or retained.