Retained Earnings
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Description
That portion of shareholders' (owners') equity resulting from profits earned and retained in the business. Profit increases retained earnings; losses and dividends reduce retained earnings.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Retained Earnings
Learning Material
Covered in Topic(s)
| Basic Financial Statements |
| Stockholders Equity: Paid in Capital |
| The Accounting Cycle: Capturing Economic Events |