Normal balance of retained earnings definition ... | Retained earnings debit or credit
The normal balance in the retained earnings account is a credit. This balance signifies that a business has generated an aggregate profit over ...AccountingToolsCPECoursesCPECoursesCPELogInHowtoTakeaCourseStateCPERequirementsStateLicenseInformationCPESurveyFormGroupDiscountsPoliciesBooksBooksListedbyTitleArticlesArticlesTopicsIndexSiteArchivePodcastAccountingBestPracticesPodcastIndexPodcastSummaryDictionaryFAQsAboutAboutContactEnvironmentalCommitmentHomeAccountingToolsCPECourses/CPECoursesCPELogInHowtoTakeaCourseStateCPERequirementsStateLicenseInformationCPESurveyFormGroupDiscountsPoliciesBooks/BooksListedbyTitleArticles/ArticlesTopicsIndexSiteArchivePodcast/AccountingBestPracticesPodcastIndexPodcastSummaryDictionary/FAQs/About/AboutContactEnvironmentalCommitmentHome/AccountingToolsAccountingCPECourses&BooksArticlesAccountingToolsCPECourses/CPECoursesCPELogInHowtoTakeaCourseStateCPERequirementsStateLicenseInformationCPESurveyFormGroupDiscountsPoliciesBooks/BooksListedbyTitleArticles/ArticlesTopicsIndexSiteArchivePodcast/AccountingBestPracticesPodcastIndexPodcastSummaryDictionary/FAQs/About/AboutContactEnvironmentalCommitmentHome/WhatistheNormalBalanceofRetainedEarnings?Thenormalbalanceintheretainedearningsaccountisacredit.Thisbalancesignifiesthatabusinesshasgeneratedanaggregateprofitoveritslife.However,theamountoftheretainedearningsbalancecouldberelativelylowevenforafinanciallyhealthycompany,sincedividendsarepaidoutfromthisaccount.Consequently,theamountofthecreditbalancedoesnotnecessarilyindicatetherelativesuccessofabusiness.Whenthebalanceintheretainedearningsaccountisnegative,thisindicatesthatabusinesshasgeneratedanaggregatelossoveritslife.Thisisespeciallycommonduringthestartupyearsofabusiness,whenitmayincursustainedlossesbeforetheentityhasaccumulatedenoughcustomersandreleasedenoughproductstoensureitselfofareasonableprofit.RelatedCoursesBookkeepingGuidebook TheInterpretationofFinancialStatementsBudgetingproblemsSingleentrysystemdefinitionCPECourses/CPECoursesCPELog
常見投資理財問答
Peachtree retained earnings problemRetained earning statementDividends should be closed to income summary account at the end of the accounting cycleRetained earnings adjustmentRetained earnings calculation