Understanding Equity: What is Retained Earnings and How to Calculate it?
elenajames022
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  • Parts 1
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  • Reads 3
  • Votes 0
  • Parts 1
  • Time <5 mins
elenajames022
Ongoing, First published Nov 02, 2022
calculationearningsequityownersretainedstatementöf
retained earnings are the accrued and undistributed profits of a business over the years. Annual earnings, as calculated in the income statement, are transferred to the retained earnings account at the end of each reporting period, where they will be added to the closing balance of the previous year.
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