because in reatined earning there is available of oppurtunity costs a beautul examples of Fd and savings as to aquire growing income by getting rate of interest as due to the inflationary and economical parameters.
as we all know that the saving is also cost of oppurtunity to modify the explicit cot but not as retained earning vis vis ....
retained earnings is costfree source of finance comment?
Retained Earnings represent the amount that an entity has increased in value due to Net Income.
Borrowing itself is not considered an explicit cost; rather, it refers to the act of obtaining funds. Explicit costs are direct, out-of-pocket expenses that a business incurs, such as wages, rent, and utilities. However, the interest paid on borrowed funds is an explicit cost, as it represents a direct financial obligation. Thus, while borrowing facilitates access to capital, the costs associated with it, like interest payments, are what fall under explicit costs.
Payment for leasing a building is generally considered an explicit cost, as it involves a direct monetary transaction that is clearly accounted for in the firm's financial statements. However, if the firm owns the building and could have earned rental income by leasing it out to another party, the opportunity cost of not renting it is an implicit cost. Thus, while leasing payments are explicit costs, the potential income from alternative uses of owned property represents an implicit cost.
The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action. For example if you are doing work already and earning 10 and you have a new opportunity to start new project with return of 11 then 10 already you are earning is your opportunity cost to start new project.
retained earnings is costfree source of finance comment?
Yes
retained earnings an asset?
Net earning of the firms, included retained earning, dividend etc.
Yes
Stock buyback is one of the three types of appropriated retained earning accounts. Also, new product development and acquisitions are two other types of appropriated retained earning accounts.
Dividends in excess of retained earnings are not allowed by the IRS or CRA.
Retained Earnings represent the amount that an entity has increased in value due to Net Income.
No. A company with cumulative losses will have negative retained earnings, or a cumulative loss.
which of the following describes the similarity between the retained earning, and common stock account?
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