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Retained Earnings Statements
Retained earnings is the account in the Equity Section of the Balance Sheet that reports the total amount of reinvested earnings or losses of a firm over its entire life. The account is sometimes referred to as an earned surplus.
The Retained Earnings Statement (or Statement of Retained Earnings) is in fact a reconciliation of the beginning and ending balances in the Retained Earnings account of the Balance Sheet. From period to period, the change in the Retained Earnings account is equal to: Net Income minus Dividends Paid.
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