Most business owners are familiar with the term “net income.” But what about “retained earnings?” This financial metric is just as important as net income, and it’s essential to understand what it is ...

Retained earnings are a saved portion of the company's profit that is not paid out to shareholders. Keeping a portion of profit back increases the amount of capital you have to expand your business or ...

“Phantom income” represents a challenge for taxpayers and businesses in tax planning and financial management—but its consequences may be worse for payors of alimony and child support. Although the ...

The accounting concept, retained earnings, is important for any company. But what exactly is it? And as an investor, how can you use it to measure a company's viability as an investment? Let's take a ...

An increase in retained earnings doesn't make it into a statement of cash flows. It goes into a statement of changes in shareholders' equity, also known as an equity report or statement of retained ...

Retained earnings are the cumulative profits that a company has kept to reinvest in its business. Some earnings are distributed to shareholders as dividends. The remainder is considered retained ...