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What is the Statement of Retained Earnings? (Explained)

Definition: The statement of retained earnings is the financial statement that reports the entity’s opening balance of retained earnings, dividend distributions, net income, and year-end balance of retained earnings at the end of the period. This statement might also show the adjusting transactions made during the year and the effect on retained earnings. This statement […]

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How to prepare a statement of retained earnings?

Retain earnings

Overview: The statement of retained earnings is the extended version of the statement of change in equity. It is normally prepared as required by the senior management team, the board of directors, or the local authority. This statement breakdown the key information related to the entity’s earnings to readers. That information including the opening balance

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Retained Earnings: Definition, Formula, Example, and Calculation

Retain earnings

Definition: Retained earnings are the accumulation of the entity’s net profit from the beginning to the reporting date after deducting the dividend payments to shareholders. These earnings are the amounts used to distribute to shareholders or reinvests based on the entity’s dividend and investment policies. For the entity that grows to the position that has

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