Also known as Retained Surplus or Retention Ratio. This is the percentage of net earnings which is not paid out to shareholders as a dividend, but is instead retained by the business to re-invest in its operations or to pay off core debt. In accounting terms, Retained Earnings is a general ledger account and is adjusted each time an entry is recorded in an income or expense account.
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Retained Earnings
What does Retained Earnings mean?
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