What is retained earnings?
Generally, retained earnings is a corporation’s cumulative earnings since the corporation was formed minus the dividends it has declared since it began. In other words, retained earnings represents the corporation’s cumulative earnings that have not been distributed to its stockholders.
The amount of retained earnings as of a balance sheet’s date is reported as a separate line item in the stockholders’ equity section of the balance sheet.
A negative amount of retained earnings is reported as deficit or accumulated deficit.
Learn more about Stockholders’ Equity.
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Wht is the entry Of Partners Withdrew For peechtree Softwear
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I didnt know that retained earning had regative earning. I always figured that it was going up not down.
Another definition of retained earnings could be:
cumulative undistributed profits (positive number) and losses) negative number
if profits are negative (losses) than the amount of undistributed
Another definition of retained earnings could be:
undistributed profits