Retained Earnings
/rɪˈteɪnd ˈɛrnɪŋz/
Definitions
- (n.) Accumulated net income of a corporation retained rather than distributed as dividends.
The company's retained earnings increased due to its profitable year.
Related terms
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Commentary
Retained earnings represent undistributed profits and appear in a corporation's equity section; care in drafting financial disclosures ensures clarity regarding dividend policy and retained earnings usage.
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