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What is retain earning

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What is retain earning

Posted by Lastborn Dkhar 5 years, 3 months ago

CBSE > Class 12 > Business Studies

1 answers

Gaurav Seth 5 years, 3 months ago

Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to investors. This amount is adjusted whenever there is an entry to the accounting records that impacts a revenue or expense account. A large retained earnings balance implies a financially healthy organization. The formula for ending retained earnings is: Beginning retained earnings + Profits/losses - Dividends = Ending retained earnings

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