Retained Earnings Definition
Refers to funds accumulated over the life of a business and held by the business for use in operations and growth. It is reported in the Equity section of a financial statement called a Balance Sheet.
The sum of net profits and net losses accumulated over the life of a business are referred to as Retained Earnings. The money is usually reinvested in the business and not paid out as dividends. Retained Earnings are reported on a financial statement called a Balance Sheet.
What Are Retained Earnings?