What is a retained earning?

Answer by  mammakat (11147)

Retained earnings are the earnings or profit that a company has reinvested into itself or used to pay off debt. This is also referred to as earned surplus, accumulated earnings, or unappropriated profit. It is not retained as dividends, and is reported as shareholder's equity in the balance sheet. Retained earnings are cumulative from year to year.

Answer by  SuchetaMalikGambhir (234)

Retained earnings are that part of the net income, which is retained by the company, instead of being distributed as dividends. It is re-invested or used for paying off liabilities.