Profits that are not released to shareholders as cash dividends are accumulated earnings, also known as undistributed profits or income reserves, and they are added to the company’s retained earnings. What is the statement of retained earnings? The total of earnings that a firm has collected and maintained in the business since it began operations is shown on a statement of retained earnings, also known as a statement of changes in equity or accumulated earnings. Comparable Terms to Accumulated Retained Earnings Other names for accumulated retained earnings include earned surplus…
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