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Prior year earnings, retained in the entity, that will be available for unrestricted use whenever whatever restrictions expire.
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.
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.
Retained Earnings is a Non-Current Liability
1. If dividend paid: Retained Earnings = Net profit - dividend if dividend not paid: Retained earnings = Net profit
Prior year earnings, retained in the entity, that will be available for unrestricted use whenever whatever restrictions expire.
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.
Stetement of retained earnings summarizes the changes occured in retained earnings from opening balance to closing balance.
Yes, I think there are some restrictions as to its use. Retained earnings are the accumulated profits/ income that arose from the operation of the business. It's use is sometimes restricted when considering some accounting principles. Mostly, the timing of recording, limit of charging based on the transaction and accounting measures, and qualification of the transactions for Retained earnings to be affected.
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.
Retained Earnings is a Non-Current Liability
NO, the retained earnings would be in the equity part of the equation.
retained earnings=profit after tax- dividend distribution
normal balance of retained earnings: credit.
From retained earnings.
When you close the accounts, it totals into retained earnings, so in turn, it is essentially retained earnings.
1. If dividend paid: Retained Earnings = Net profit - dividend if dividend not paid: Retained earnings = Net profit