Discover where retained earnings appear in financial statements, and understand their impact on business reinvestment and dividend payouts.

Learn about appropriated retained earnings, how they work, their uses in businesses like acquisitions and R&D, and why they matter in financial planning.

Companies have always faced a major issue of how to reflect changes in accounting methods and error corrections in financial statements. In 2005 FASB issued Statement ...

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 ...

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 ...

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 ...