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...
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...
A statement that shows the changes in retained earnings from one point to another.
Usually financial statements refer to the balance sheet, income statement, statement of cash flows, statement of retained earnings, and statement of stockholders’ equity. The balance sheet reports information as of...
Includes the main financial statements (income statement, balance sheet, statement of cash flows, statement of retained earnings, statement of stockholders’ equity) plus other financial information such as annual...
Refers to the accounting associated with the preparation of the main financial statements: income statement, balance sheet, statement of cash flows, statement of retained earnings, statement of stockholders’...
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...
Our Explanation of Adjusting Entries gives you a process and an understanding of how to make the adjusting entries in order to have an accurate balance sheet and income statement. Eight examples including T-accounts for...
The most common example is the correction of an error from a prior year. When such a correction is made, it is reported in the current period’s statement of retained earnings rather than in the current...
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...
A second retained earnings account that reports the amount that a company has transferred from the unappropriated or regular retained earnings account.
Retained earnings not available for dividends.
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...
Our Explanation of Payroll Accounting discusses the taxes and benefits which are withheld from employees' pay as well as the taxes and benefits that are expenses for the employers. Also provided are examples of the...
Our Explanation of Financial Statements provides you with the highlights of each of the five external financial statements issued by U.S. corporations. Our insights will give you a good understanding of what the...
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...
Right! 14. The changes that occurred during a recent year in the accounts Retained Earnings and Treasury Stock will be presented in which financial statement? Balance Sheet Wrong. Income Statement Wrong. Statement Of...
Our Explanation of Accounting Basics uses a simple story to introduce important accounting concepts and terminology. It illustrates how transactions will be included in a company's financial statements.
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...
fee revenue, subscription revenue, advertising revenue, interest revenue, etc. The revenue accounts are temporary accounts that facilitate the preparation of the income statement. However, when a corporation earns...
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...
income of a corporation is closed to the __________ Retained Earnings account. 14. Dividends declared by a corporation reduce the __________ retained earnings section of stockholders' equity. 15. Dividends appear...
, 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...
, and is it a debit or credit? How are dividends paid when there are dividends in arrears? What is capital surplus? What are the stockholders' equity accounts? What is the statement of stockholders' equity? A...
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...
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