Retained earning means: Not distributing profits to stake holders and keeping
the profits of a company for the use of the business entity either for working capital or for new projects etc.,
Dividends means: Distribution of profits earned by a company to the stakeholders ( loosing funds earned as profits
to stake holders )
Net Income is the amount which is available for sharesholders to be paid while retained earnings is that part of income which is not paid to share holders and dividend is that part of income which is distributed to share holders.
Dividends in excess of retained earnings are not allowed by the IRS or CRA.
Net earning of the firms, included retained earning, dividend etc.
RETAINED EARINING ARE THE FINAL BALANCE OF THE PROFIT WHICH IS LEFT AND REATINED BACK IN THE BUSINESS AFTER DISTRIBUTION OF DIVIDENDS, HENCE RETAINED EARNING IS DERIVED AFTER PAYMENT OF DIVIDEND
In any given period, the way you determine retained earnings is as follows: Beginning Retained Earnings Add: Net Income Less: Dividends to Shareholders Equals: Ending Retained Earnings
The question assumes a 100% dividend payout which, although unusual, would be 12,000
Paid in capital is that amount which investor invest in company while retained earning is that portion of profit which is not distributed to shareholders of company.
It is very important that the self directed investor understands the difference between dividends and interest.-Dividends- Dividends are generally paid to shareholders of a publicly traded company.-Interest- Earning interest would be from loaning your money. If you put your money in the bank or buy bonds you are actually loaning your money.The single most important reason for knowing the difference is tax. Dividends are taxed at a different rate than interest earned. It is suggested to seek professional accounting advice on how these tax rates affect you.
For my opinion Earning par share refer to a full dividend after expenses. But if we have prefered stock we need to seperate prefered stock dividends and take its balance for common stock dividends by:Earning per share = Balance after prefered stock dividends / Number of shareOne more Dividends per share refer to balance for common stcok after we seperate balance after prefered stock dividends to both side, common stockdividends and retained earning.Dividends per share = Common stock dividends / Number of shareis that right? if another have any ideas please let me know.Thanks.!
which of the following describes the similarity between the retained earning, and common stock account?
what is the difference between basic earning per and adjusted earning per share?
In accounting, retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings.
Yes