Business earnings after deducting the Dividends from Net Income:
Retained Earnings = Net Income − Dividends |
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If Retained Earnings are not fully expensed during the Accounting Period then they are accrued in the records:
Closing Retained Earnings = Opening Retained Earnings + Net Income − Dividends |
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See also
Business / Business Administration / Financial Management / Financial Accounting / Profit and Loss (P&L)