Statement Of Retained Earnings


DEFINITION of 'Statement Of Retained Earnings'

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.

  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Shareholder

    Any person, company or other institution that owns at least one ...
  3. Appropriated Retained Earnings

    Any unappropriated retained earnings that are specifically not ...
  4. Income Statement

    A financial statement that measures a company's financial performance ...
  5. Retained Earnings

    Retained earnings is the percentage of net earnings not paid ...
  6. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
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  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 Full Answer >>
  2. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  3. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  4. How much working capital does a small business need?

    The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating ... Read Full Answer >>
  5. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  6. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>

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