Retained earnings are the cumulative profits that a company has kept to reinvest in its business. Some earnings are distributed to shareholders as dividends. The remainder is considered retained ...

Most business owners are familiar with the term “net income.” But what about “retained earnings?” This financial metric is just as important as net income, and it’s essential to understand what it is ...

Retained earnings are profits that are earned by a company but are not distributed out to shareholders as dividends payments. Retained earnings can be used to fund operations, for large capital ...

Retained earnings are profits of a business that are not paid out to the owners but instead are retained by the business for several reasons, such as for investment, business expansion or the purchase ...

Here's how to show changes in retained earnings from the beginning to the end of a specific financial period. Many, or all, of the products featured on this page are from our advertising partners who ...

Discover how share premium accounts are positioned on balance sheets and their strategic financial uses, including issuing bonus shares and expense coverage.

Closing entries transfer revenue and expense balances to the retained earnings account. This process resets the temporary account balances to zero for the new accounting period. Recording closing ...

“Phantom income” represents a challenge for taxpayers and businesses in tax planning and financial management—but its consequences may be worse for payors of alimony and child support. Although the ...

Saudi Top for Trading Co.’s board recommended on Dec. 30 transferring the entire statutory reserve balance to the retained earnings account. In a statement to Tadawul, the company said that the ...