Retained Earnings

2 Pages
104 Views
Unlock Document

Department
Financial Accounting
Course
MGAB01H3
Professor
Liang Chen
Semester
Fall

Description
Retained Earnings ¾ Retained earnings comprise the cumulative total since incorporation of net income (less losses) less any declared dividends. The balance in retained earnings is part of 9K08K,70K4O/078¶.O,L2439K0949,O,88098419K0.47547,9L43,9/4083499K4:JK represent a claim on any specific asset. A debit balance in the retained earnings is identified as a deficit. Retained Earnings Restrictions ¾ These are a portion of the balance unavailable for dividends. Restrictions generally are of one or more of the following types: Contractual restrictions (long-term debt) and Voluntary restrictions (the board of directors may voluntarily create restrictions). Retained earnings restrictions are generally disclosed in the notes to the financial statements. Prior Period Adjustments ¾ A prior period adjustment occurs when correcting an error related to a prior period, and when changing an accounting principle. When a correction of an error or a change in accounting principle results, the accounting principle treatment is similar: the cor
More Less

Related notes for MGAB01H3

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit