Retained Earnings Definition
Retained earnings refer 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.
Retained Earnings Expanded Definition
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.
Retained Earnings: Definition, Calculation, and More
Last Updated By
Christan Neff | Apr 17, 2023