Unappropriated Retained Earnings


DEFINITION of 'Unappropriated Retained Earnings'

Any portion of company earnings that are not classified as appropriated retained earnings. Unappropriated retained earnings cannot be allocated for a specific purpose, such as factory construction or marketing. They are generally passed on to shareholders in the form of dividends.

BREAKING DOWN 'Unappropriated Retained Earnings'

Unappropriated retained earnings essentially determine the amount of dividend that will be paid to shareholders. The greater the retained earnings, the higher the dividend that can be paid. These earnings are divided among all of the outstanding shares of the company and paid according to a set schedule.

  1. Appropriated Retained Earnings

    Any unappropriated retained earnings that are specifically not ...
  2. Accounting Valuation

    The process of valuing a company's assets for financial-reporting ...
  3. Accounting Method

    The method by which income and expenses are reported for taxation ...
  4. Earnings

    The amount of profit that a company produces during a specific ...
  5. Net Income - NI

    1. A company's total earnings (or profit). Net income is calculated ...
  6. Retained Earnings

    Retained earnings is the percentage of net earnings not paid ...
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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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