Answer Posted / 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 View All Answers
Expand-------BANT
Expand BEMS
Workers name-Madhu Saha.Pay structure,basic-5850,HRA-1350,CCA-900,TRAV.ALLOW.900.DEDUCTION-PF-702.ESI-150,P.TAX-90.WHAT IS THE EXTRACT IN PF,ESI,IN BALANCE SHEET & sALARY IN p/l A/C . iS IT POSSIBLE THAT PERSONS'S NAME SHOUL COME I P/L
What will be entry pass in tally if TDS paid by Credit Card.?
sir i am working consruction company.we have 4 projects in varrious places.i enter attendance in payroll by project wise.if enter autofill salaries combained all projects.i want individual salaries base on attendance feeding method.because staff are changing in one project to another project offenly.please explain method
how to pass journal entry or where to show forein transaction reserv in Bal sheet. pls explain basic
Define The Term Journal And Explain The Present Day Use?
What is wealth maximisation
define bank Draft
which kind of expenses or Income will come under direct expenses or Income ?
i AM CURRENTLY DOING B.COM. i INTEND TO PURSUE MY MASTERS AT USA IN ECONOMICS AND FINANCE OR ACCOUNTING...CAN U TELL ME THE CRITERIA AND WHICH EXAM DO I NEED TO QUALIFY FOR???
Being BE student why you want to join bank?
WHAT IS PROSPECTUS?
what is the difference between cash flow and funds flow
1.explain the accounting concepts ? 2.what are the objectives of preparing a trail balance ?
