Retained earnings are the amount of profit a company has left over after paying all its direct costs, indirect costs, income taxes and its dividends to shareholders.
Retained earnings are the portion of a company's net income that is not distributed to shareholders as dividends. Instead, it is kept by the company to be reinvested in the business. Retained earnings are shown on the company's balance sheet and are an important part of its equity.
Retained earnings can be used for a variety of purposes, such as:
Funding expansion projects
Purchasing new equipment and inventory
Paying down debt
Research and development
Acquiring other companies
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Answer:
Retained earnings are the amount of profit a company has left over after paying all its direct costs, indirect costs, income taxes and its dividends to shareholders.
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Retained earnings are the portion of a company's net income that is not distributed to shareholders as dividends. Instead, it is kept by the company to be reinvested in the business. Retained earnings are shown on the company's balance sheet and are an important part of its equity.
Retained earnings can be used for a variety of purposes, such as:
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