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.

what is accounting

3 Answers  

---

Expand-------- CTEI

1 Answers  

---

Plz send me the questions that could be asked in an interview for a Bank Clerical job to suja_aln@yahoo.co.in. Thank you.

0 Answers  

---

WHAT IS MEANT BY FACTORING, TRESURY BILLS,BULLS, BEARS

1 Answers   Unisys,

---

what is diffference between retail invoice and tax invoice ?

2 Answers   Octopus,

---

what is the difference between secured loan and unsecured loan. please explain

3 Answers   HCL,

---

if our balance sheet will not matching so what i do ?

2 Answers   Hero Honda, Rachana Sansad,

---

what is loan syndication?

2 Answers  

---

what is fundamentals of accounting ?

15 Answers  

---

EXPAND______________PGDC

1 Answers  

---

Expand---------SRRT

2 Answers  

---

ABC Co. is considering an investment with a cost of $55,000. Annual cash savings of $100,000, Present Value at %12 (ABC's discount rate) of $56,502, are expected for the next 10 years. What can we conclude? 1. ABC Co. should make the investment 2. The investment offers a 12 percent rate of return

1 Answers  

---