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Retained Earnings

A subsection of equity and it refers to the lifetime earnings of the company as of the end of the prior accounting year.

Financial Statements for the Small Business


Financial statements serve the purpose of presenting economic activity and status related to a particular date and over a particular time frame.  Accountants record monetary transactions and via financial reports present the information in an easy [...]

Retained Earnings – How it Works


In the equity section of the balance sheet there is an account that tallies the lifetime earnings net of dividends for the company.  The value identifies the total amount retained by the company for operational purposes.  This account is referred [...]

How to Read a Balance Sheet – Simple Format


Reading a balance sheet is instrumental in understanding the business’s financial position.  This particular financial report is a snapshot of a moment in time.  It can change dramatically in a minute so understanding the perspective of the [...]