What are the Functions of Retained Earnings?

[Suba]

Retained earnings are from business profits that are not distributed to shareholders, if not used, retained earnings will increase so that it will increase business capital. The amount of retained earnings is determined by the general meeting of shareholders. Retained earnings are calculated from net profit after tax minus profits distributed in the form of dividends.

 

[Augusta]

Retained earnings from the name is the remaining profit of an organism after net profit. it can used to reinvest in. a business again

 

[Stardom22]

For me l can say that the retained earnings have so many uses for sure. Most people use that for the personal expenses and for business purposes mainly for business expansion among other important uses.

 

[Fidelia]

Even sole proprietorship business also use retained earnings to build capital to expand their businesses. It is important for business advancement.

 

[Starmix]

A retained earning can be utilize by several functions like for donations during calamities, and may be subdivided accordingly to the workers if agreed by the board.

 

[Min George]

Retained earnings helps a business to grow at a much faster pace. It also allows for funds to be found for quick acquisition for the business.