Retained Earnings in BS.
There are to terms in Finance Net profit and Retained Earnings. Net profit which is earned during the year from the business transactions. where the Retained earnings is...
profits
Answer.
More specifically, profits that are not distributed to shareholders as dividends are maintained in the retained earnings section of the equity section of the balance sheet. For...
If the company started out with negative Retained Earnings, the ending balance would be less than their Net Income.Or, if the company paid out a large amount in Dividends.