ContentDividends And Retained EarningsVideo Explanation Of Retained EarningsAre Retained Earnings An Asset?How Retained Earnings WorkHow Dividends Affect Stock Prices
The amount of withdrawals is subtracted from bookkeeping the accumulated retained earnings balance, just like dividends are. Retained earnings differ from revenue because they are derived from net income on the income statement and contribute to book value (shareholder’s equity) on the balance sheet. By definition, retained earnings are the cumulative net earnings or profits of a company after accounting for dividend payments. It is also called earnings surplus and represents the reserve money, which is available to the […]