Statement of retained earnings,
Definition of Statement of retained earnings:
Financial statement showing the net income of a firm set aside as a reserve, paid out to the stockholders (shareholders), and consumed by the losses. It usually accompanies an income statement or statement of owners equity.
The statement of retained earnings (retained earnings statement) is a financial statement that outlines the changes in retained earnings for a company over a specified period. This statement reconciles the beginning and ending retained earnings for the period, using information such as net income from the other financial statements, and is used by analysts to understand how corporate profits are utilized.
The statement of retained earnings is also known as a statement of owner's equity, an equity statement, or a statement of shareholders' equity. Boilerplate templates of the statement of retained earnings can be found online. It is prepared in accordance with generally accepted accounting principles (GAAP).
How to use Statement of retained earnings in a sentence?
- As a new investor and possible partner, the businessman sought a chance to review every germane piece of paperwork dealing with his new potential business allys fiscal interests, including a statement of retained earnings , keeping an eye particularly on how his new potential partner was handling stock dividends.
- Analysts can look at the retained earnings statement to understand how a company intends to deploy its profits for growth.
- The company that holds our mutual funds sent out a statement of retained earnings in order to ensure confidence in their company due to these financially unstable times.
- Retained earnings are profits held by a company in reserve in order to invest in future projects rather than distribute as dividends to shareholders.
- The statement of retained earnings provided equity shareholders and investors with valuable information with regards to the financial health of the company.
- The statement of retained earnings is a financial statement prepared by corporations that details changes in the volume of retained earnings over some period.
Meaning of Statement of retained earnings & Statement of retained earnings Definition