Retained Earnings
Retained Earnings are the portion of a company`s profits not distributed as dividends but reinvested in the business or held as reserves.
Benefits
Retained earnings are profits kept within the company for reinvestment or reserves instead of dividends.
Frequently Asked Questions
Can retained earnings be distributed as dividends?
Yes, retained earnings can be paid out as dividends to shareholders, but they are often reinvested back into the company for growth.
What is the meaning of retained earnings?
Retained earnings are profits that a company keeps for growth or debt repayment, instead of distributing them as dividends.
Does retained earnings represent the earnings of the corporation that have not been distributed as dividends to stockholders?
Yes, retained earnings are profits that have been reinvested in the company rather than paid out as dividends.
Key Takeaway
Retained earnings reinvest company profits for growth or keep them as reserves.