Retained Earnings: Definition, Formula & Example
Retained earnings are the amount that a firm keeps after it has distributed dividends to shareholders.
Financial accounting refers to the process by which incoming and outgoing cash flows are recorded. These are typically summarized through three key statements: the income statement, the balance sheet, and the cash flow statement.
Retained earnings are the amount that a firm keeps after it has distributed dividends to shareholders.
Net income (NI) is the amount of income an individual or business receives, minus any expenses.
Net Present Value (NPV) is the total value of future revenues, subtracted against any cash outflows during the same period.
Present value (PV) is the current value of a future sum of money, or stream of revenue. Tihs is calculated by using the discount rate.