45+ Retained Earning Normal Balance
PNG. Generally speaking, a company with a negative retained earnings balance would signal weakness, since it indicates that the company has experienced losses in one or more previous years. Create your own flashcards or choose from millions created by other students.
They're also part of having employees.
As the corporation accumulates profits, its assets will grow; Generally speaking, a company with a negative retained earnings balance would signal weakness, since it indicates that the company has experienced losses in one or more previous years. Retained earnings can be a negative number if the company has had a loss or a series of losses that amount to more than its recent profit or series of profits. The retained earnings (also known as plowback) of a corporation is the accumulated net income of the corporation that is retained by the corporation at a particular point of time, such as at the end of the reporting period.
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