Golgappa.net | Golgappa.org | BagIndia.net | BodyIndia.Com | CabIndia.net | CarsBikes.net | CarsBikes.org | CashIndia.net | ConsumerIndia.net | CookingIndia.net | DataIndia.net | DealIndia.net | EmailIndia.net | FirstTablet.com | FirstTourist.com | ForsaleIndia.net | IndiaBody.Com | IndiaCab.net | IndiaCash.net | IndiaModel.net | KidForum.net | OfficeIndia.net | PaysIndia.com | RestaurantIndia.net | RestaurantsIndia.net | SaleForum.net | SellForum.net | SoldIndia.com | StarIndia.net | TomatoCab.com | TomatoCabs.com | TownIndia.com
Interested to Buy Any Domain ? << Click Here >> for more details...


What is retained earnings



What is retained earnings..

Answer / james e

The percentage of net earnings not paid out as dividends,
but retained by the company to be reinvested in its core
business or to pay debt. It is recorded under shareholders'
equity on the balance sheet.

The formula calculates retained earnings by adding net
income to (or subtracting any net losses from) beginning
retained earnings and subtracting any dividends paid to
shareholders:


Retained Earnings=Beginning Balance of Retained
Earnings+net income-Dividends paid out to shareholders.


Also known as the "retention ratio" or "retained surplus".

In most cases, companies retain their earnings in order to
invest them into areas where the company can create growth
opportunities, such as buying new machinery or spending the
money on more research and development.

Should a net loss be greater than beginning retained
earnings, retained earnings can become negative, creating a
deficit.

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Accounting AllOther Interview Questions

WHAT IS 'MORTGAGE AND REVERSE MORTGAGE'?

3 Answers   BA Continnum Solutions,


credit management as an essential component of financial management explain?

2 Answers  


What is Mean By Defered Tax, How To Calculate?

3 Answers   Malwa,


IN PROFIT AND LOSS ACCOUNT WE MAY EITHER GET PROFIT OR LOSS.SO WHY IT IS PROFIT AND LOSS ACCOUNT INSTEAD OF PROFIT OR LOSS ACCOUNT ?

6 Answers  


What is the difference between reserve and provision.

0 Answers   HP,


What is CMA Data? Explain in detail.

14 Answers   Garware, KK Capital, MR Constructions, nsdl,


Gross Profit Margin ?

3 Answers   Capital IQ,


What is RTGS system and when it was formulated and who?

2 Answers  


Q 1. Explain me about the Professional tax.

2 Answers  


How to decide the number of voucher files to be maintained ? What are the possible voucher files?

1 Answers  


how u find ou the closing stock

4 Answers  


Expand L S T

1 Answers  


Categories