Statement Of Retained Earnings

What is a 'Statement Of Retained Earnings'

A statement of retained earnings is a financial statement outlining the changes in retained earnings for a specified period. The statement of retained earnings is prepared in accordance with generally accepted accounting principles (GAAP). The statement of retained earnings reconciles the beginning and ending retained earnings for the period, using information such as net income from the other financial statements.

BREAKING DOWN 'Statement Of Retained Earnings'

This statement can appear as a separate statement or as an inclusion on either a balance sheet or an income statement. Also, the statement of retained earnings can be known as a statement of owner's equity, equity statement or statement of shareholders' equity.

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RELATED FAQS
  1. Which transactions affect the retained earnings statement?

    Retained earnings are the portion of a company's income that management retains for internal operations instead of paying ... Read Answer >>
  2. What's the difference between retained earnings and revenue?

    See why retained earnings and revenue are both considered important measurements of a company's financial performance, and ... Read Answer >>
  3. How do you calculate retained earnings per share?

    Research the amount of retained earnings per share compared over time to understand whether or not a company uses its profits ... Read Answer >>
  4. How are the three major financial statements related to each other?

    Learn why investors analyze a company's financial statements, and how the income statement, balance sheet and cash flow statement ... Read Answer >>
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    Understand more about the principle purposes and primary differences between a company's income statement and its balance ... Read Answer >>
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