Retained Earnings

Retained Earnings

Retained Earnings means:
net profits kept to accumulate in a business after dividends are paid. Retained earnings are distinguished from contributed capital. Compare with earnings and profits.

See also other Tax Terms and Definitions in U.S.A.

accumulated earnings tax; accumulated earnings and profits.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.

Description and Definition of Retained Earnings

Profits of the business that have not been paid out to the owners as of the balance sheet date. What's left of earnings after dividends are paid. The earnings have been retained for use in the business.

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