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assets
asset equity
Retained earnings are non distributed profit part and hence a liability of the company to payback to the owners of company on case of dissolution that's why retained earning is liability and not the asset.
Neither. Retained Earnings falls in the Equity section of the Balance Sheet.
retained earnings an asset?
assets
asset equity
Retained earnings are non distributed profit part and hence a liability of the company to payback to the owners of company on case of dissolution that's why retained earning is liability and not the asset.
Neither. Retained Earnings falls in the Equity section of the Balance Sheet.
retained earnings an asset?
Retained Earnings is a Non-Current Liability
Retained earnings is that part of profit which is not distributed to the share holders so it is the liability of the business towards its owners and that's why like all liabilities it is also the liability of business and shown in balance sheet.
A transaction that only affects asset and/or liability accounts would have no impact on Retained Earnings. Such as paying an Accounts Payable invoice or receiving payment of an Accounts Receivable.
NO, the retained earnings would be in the equity part of the equation.
No, retained earnings comes after Net Income on the Income Statement. The retained earnings is less than the Net Income if a dividend is paid out.
Debit Asset accountCredit retained earnings
liability