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 |
I am poor in written test. i ever qualify in written test so please keep a bank of america model paper
5 Answers BACS, Bank Of America, Capital IQ, Genpact, ICICI,
What is considered a healthy profit?
what are share warrants?
Expand---------PDBC
what is shudle six balancesheet
Choose the right answer Maximum allowable interest on housing loan on self occupied property is 1.30000/- 2.100000/- 3.150000/-
A company produces and sells 12500 units of Commodity X at Rs 50 each. The variable cost of the production is 20 % of selling price. Fixed cost being Rs 100000 per annum. Calculate the PV ratio and BEP if. The selling price is reduced by 5 %. Fixed cost is increased by 2 lacs
Mac Purchased on 15th Jan 12000/- 30th June Machinery damaged due to Fire Accident 31st Dec received the Insurance Premium 13000/-. Pass the Journal Entry for all the above three
Short Answer on __________Trade
Your company code use USD as the company currency. You are trying to post to an account in EUR but get an error message that you can see the problem. What is the reason?( any 1 answer) • The currency maintained in the account master record is USD • The translation rate between EUR and USD is NOT maintained • The only balances in local currency indictor is set in the account. • The account determination for exchange rate difference is missing for the account
Has anybody who got shortlisted for Syndicate Interview got the mail from syndicate bank specifying the interview date?
what is meant by cash purchase?