Retained earnings

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Retained earnings are accumulated profits of a corporation that have been kept in the business and not paid out as dividends. Retained Earnings is an account and a part of stockholders' equity.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Retained Earnings. Accumulated profits of a corporation that have been kept in the business and not paid out as dividends. Retained Earnings is part of stockholders' equity.

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Retained earnings. The portion of the firm's earning that have been saved rather than paid out as dividends.

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