Q » Define retained earnings.
06 Dec, 2025
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.
06 Dec, 2025
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