{"id":174873,"date":"2024-04-28T21:37:00","date_gmt":"2024-04-28T21:37:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=174873"},"modified":"2024-05-02T08:11:34","modified_gmt":"2024-05-02T08:11:34","slug":"what-are-retained-earnings","status":"publish","type":"post","link":"https:\/\/businessyield.com\/marketing\/what-are-retained-earnings\/","title":{"rendered":"Are Retained Earnings Recognized as an Asset or Liability on the Balance Sheet?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

How can you get a quick overview of the financial information about your company at any given time? Your balance sheet. It contains information on your debts, assets, and shareholders’ equity value. It shows your company’s overall financial state. You must understand your balance sheet for this reason. It\u2019s called a \u2018balance sheet\u2019 because your assets should always equal your liabilities plus your shareholders\u2019 equity. Spending some time getting to know your balance sheet is worthwhile. By interpreting it, you can identify potential risks to your company’s financial health, such as low cash balances or excessive debt-to-cash flow ratios. The amount of retained earnings is one key sign of the company’s future growth and financial health. Are retained earnings recognized as an asset or liability on the balance sheet?<\/p>

Please read through it as I explain retained earnings, whether they are an asset or liability, how to calculate them, some differences between profits, and some key examples.<\/p>

Key Points<\/span><\/h2>\n\n