Q » Define retained earnings.

Steven

06 Dec, 2025

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A » Retained earnings refer to the cumulative amount of net income that a company retains, rather than distributing it as dividends to shareholders. These earnings are reinvested into the business for growth, debt repayment, or other corporate purposes. Retained earnings are reported on the balance sheet under shareholders' equity and reflect the company's ability to generate profit over time and its strategic financial management decisions.

Michael

06 Dec, 2025

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A »Retained earnings represent a company's accumulated profits that are not distributed to shareholders as dividends. They are reinvested in the business to finance growth, pay off debt, or build cash reserves. Retained earnings are a key component of a company's equity and can be found on the balance sheet.

David

06 Dec, 2025

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