Financial Accounting Retained Earnings
Financial Accounting Retained Earnings refer to the portion of a company's net income that is not distributed to shareholders as dividends, but instead is retained and reinvested in the business. This amount represents the cumulative earnings of the company since its inception, minus any dividends paid out to shareholders. Retained earnings are an important measure of a company's financial health and its ability to grow and expand operations without relying on external financing. They are typically reported on the balance sheet under shareholders' equity.
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