What Is The Difference Appropriated And Unappropriated Retained Earning?


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Arsalan Maqbool Profile
Arsalan Maqbool answered
Retained earnings are basically accumulated earnings that have not been distributed to shareholders but rather invested again in the business.It can be put simply as the net income a company earns minus the dividends it pays.They may be "appropriated" for specific purposes like bond payments or unappropriated retained earnings which are available to be distributed as dividends.Note that appropriated retained earnings can be disclosed on the balance sheet or in the footnotes of financial statements.

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