A second retained earnings account that reports the amount that a company has transferred from the unappropriated or regular retained earnings account.
A second retained earnings account that reports the amount that a company has transferred from the unappropriated or regular retained earnings account.
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
A financial statement that reports the current year information contained in the general ledger account Retained Earnings. The statement will include the beginning balance, prior period adjustments, net income for the...
The regular retained earnings. Retained earnings that have not been restricted.
A stockholders’ equity account that generally reports the net income of a corporation from its inception until the balance sheet date less the dividends declared from its inception to the date of the balance...
What is retained earnings? Author: Harold Averkamp, CPA, MBA Definition of Retained Earnings Retained earnings is the cumulative amount of earnings since the corporation was formed minus the cumulative amount of...
Retained earnings not available for dividends.
A statement that shows the changes in retained earnings from one point to another.
Are retained earnings an asset? Author: Harold Averkamp, CPA, MBA Definition of Retained Earnings Usually, retained earnings consists of a corporation’s earnings since the corporation was formed minus the amount that...
Why aren't retained earnings distributed as dividends to the stockholders? Author: Harold Averkamp, CPA, MBA Definition of Retained Earnings Retained earnings is one component of the stockholders’ equity section...
What is the difference between paid-in capital and retained earnings? Author: Harold Averkamp, CPA, MBA Definition of Paid-in Capital Paid-in capital is one of the major categories of stockholders’ equity. Generally,...
A corporation has a large balance in retained earnings. Does that mean that its dividends to stockholders will be increasing? Author: Harold Averkamp, CPA, MBA Definition of Retained Earnings Retained earnings is one...
Our Explanation of the Balance Sheet provides you with a basic understanding of a corporation's balance sheet (or statement of financial position). You will gain insights regarding the assets, liabilities, and...
What type of account is the Dividends account? Author: Harold Averkamp, CPA, MBA Definition of Dividends Account When a corporation declares a cash dividend, the amount declared will reduce the amount of the...
What is "deficit" appearing in stockholders' equity? Author: Harold Averkamp, CPA, MBA Definition of Deficit Within Stockholders’ Equity The term deficit is used within the stockholders’ equity section...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
How does revenue affect the balance sheet? Author: Harold Averkamp, CPA, MBA Effect of Revenue on the Balance Sheet Generally, when a corporation earns revenue there is an increase in current assets (cash or accounts...
Our Explanation of Debits and Credits describes the reasons why various accounts are debited and/or credited. For the examples we provide the logic, use T-accounts for a clearer understanding, and the appropriate general...
account Cash and reduces the corporation’s stockholders’ equity account Retained Earnings. Some corporations will declare a stock dividend instead of (or in addition to) a cash dividend. A stock dividend distributes...
. If a common stock does not have a par value or a stated value, the entire proceeds from issuing the stock is credited to one account entitled __________ Common Stock. 12. Stockholder's equity is subdivided into...
, the stockholders’ equity account Retained Earnings is debited for the total amount of the dividend that will be paid and the current liability account Dividends Payable is credited for the same amount. (Some...
Our Explanation of Bookkeeping provides you with a rich understanding of the recording of transactions. It then discusses the additional steps necessary for preparing accurate financial statements. This is great for...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
Stockholders' Equity Author: Harold Averkamp, CPA, MBA 67 Q&A Popular Recent Where do dividends appear on the financial statements? How do you record a dividend payment to stockholders? What is equity? What is...
may be paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Examples of Negative Amounts in the Equity Section If the current year’s net income is reported as a separate line...
are a distribution of the corporation’s earnings. This explains why state laws likely require corporations to have a credit balance in Retained Earnings before declaring and paying dividends. Practically speaking, the...
A corporation’s reported net income and earnings per share for a three-month period.
The ratio of the market value of a share of common stock to the earnings per share of common stock. For example, if a corporation earned $3 per share and its stock is trading at $36, it’s price earnings ratio is...
See quality of earnings.
Earnings are said to be of a high quality if the accounting policies are conservative. One indication is that the cash flows from operating activities shown on the statement of cash flows consistently exceed the amount...
The term used in place of retained earnings when a corporation has a negative (debit) balance in its account Retained Earnings.
income (earnings, profits). Dividends will reduce the corporation’s retained earnings which is reported in the stockholders’ equity section of the balance sheet. (A cash dividend also reduces the corporation’s...
positive net income causes an increase in the retained earnings, which is part of stockholders’ equity. A net loss will cause a decrease in retained earnings and stockholders’ equity. A sole proprietorship’s net...
the amounts in an Income Summary account.) The Income Summary is very temporary since it has a zero balance throughout the year until the year-end closing entries are made. Next, the balance resulting from the closing...
Our Explanation of Accounting Equation (or bookkeeping equation) illustrates how the double-entry system keeps the accounting equation in balance. You will see how the revenues and expenses on the income statement are...
Our Explanation of Bookkeeping provides you with a rich understanding of the recording of transactions. It then discusses the additional steps necessary for preparing accurate financial statements. This is great for...
This term is used in place of retained earnings when the balance in the retained earnings account is negative (a debit balance).
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