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Retained Earnings Definition

Retained earnings refer to funds accumulated over the life of a business and held by the business for use in operations and growth. It is reported in the equity section of a financial statement called a balance sheet.

Retained Earnings Expanded Definition

The sum of net profits and net losses accumulated over the life of a business are referred to as Retained Earnings. The money is usually reinvested in the business and not paid out as dividends. Retained Earnings are reported on a financial statement called a balance sheet.

Last Updated By

Rachel Blakely-Gray | Apr 17, 2023

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