Is Retained Earnings an Asset?
Within the financial sector and business operations, there is a plethora of information that is vital to comprehend. Yet one important facet of business operations is the functionality of retained earnings and whether or not they are an asset. Retained earnings within accounting are the net profit for a specific company after dividend payments have been made. Moreover, retained is the operative word here, as it denotes that earnings were not paid to shareholders. Subsequently, those are then retained by the company, hence the name. Therefore, let’s delve deeper into the idea and what it means regarding business accounting. Additionally, we will break down whether or not this could be qualified as an asset and some other important factors. What Are Retained Earnings? Source: AFP Also Read: What is Business Finance ? Although the name is fairly self-explanatory, let’s delve into just what retained earnings are. Specifically, let’s discuss what retained earni...