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Retained earning does not go anywhere. It is a part of capital equity which shown in equity section of balance sheet.
Wiki User
∙ 7y ago
Wiki User
∙ 9y agoRetained earnings are part of capital that's why it is shown in equity section of balance sheet as an increase in equity.
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Does Retained Earnings restricted for building expansion go on a Classified Balance Sheet?
Yes retained earnings that are restricted for building expansion are placed on the classified balance sheet. Retained earnings are not considered assets.
Is unappropriated retained earnings credit?
Yes, since this account (Retained Earnings) is a credit account and an uppropriate retained earnings account is simply a non-restricted account which is Retained Earnings !!! Even the restricted/ appropriate retained earnings are credited.
Which financial statement summarizes the changes in retained earnings?
Stetement of retained earnings summarizes the changes occured in retained earnings from opening balance to closing balance.
What makes retained earnings go down?
Retained earnings can go down if there is a negative supply of net income, or if more dividends are paid then net income. For example, retained earnings can go down if a company uses leftover cash to pay shareholders for previous years cash holdings.
What are the reasons for not using retained earnings when starting a new business?
A new business has no retained earnings. Retained earnings are prior years earnings that have not been distributed to the shareholders... if it is a brand new business there is no possible way to have retained earnings at inception date.
Is retained earnings a current liability?
Retained Earnings is a Non-Current Liability
Is retained earnings a liability?
NO, the retained earnings would be in the equity part of the equation.
Formulla for retained earnings?
retained earnings=profit after tax- dividend distribution
What is the normal balance of retained earnings?
normal balance of retained earnings: credit.
Are dividends paid out of the current year's profits or from retained earnings?
From retained earnings.
What is a closed revenue and expense account to retained earnings called?
When you close the accounts, it totals into retained earnings, so in turn, it is essentially retained earnings.
How is retained earnings calculated?
1. If dividend paid: Retained Earnings = Net profit - dividend if dividend not paid: Retained earnings = Net profit
