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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.
What are temporairly restricted retained earnings?
Prior year earnings, retained in the entity, that will be available for unrestricted use whenever whatever restrictions expire.
Where does appropriation for plant expansion go on the balance sheet?
Retained earnings
What is the entry when releasing a net asset from temporarily restricted?
Release restricted funds by creating a journal entry which is a credit to the restriction account and a debit to retained earnings
Is retained earnings are current liability?
No, retained earnings are not a current liability. Retained earnings represent the cumulative amount of net income that a company has retained, rather than distributed as dividends, and are classified as a part of shareholders' equity on the balance sheet. Current liabilities, on the other hand, are obligations that the company needs to settle within one year.
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.
Is there a restriction on what you can do with retained earnings?
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.
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.
What is the normal balance of retained earnings?
normal balance of retained earnings: credit.
Formulla for retained earnings?
retained earnings=profit after tax- dividend distribution
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.
