What is the opening balance of retained earnings and what does it indicate? Is it the the same as beginning balance? & What does ending balance indicate as well? Please explain. Thank you
What is the opening balance of retained earnings and what does it indicate? Is it the the same as beginning balance? & What does ending balance indicate as well? Please explain. Thank you
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the opening balance of retained earnings and what does it indicate? Is it the the same as beginning balance? & What does ending balance indicate as well? Please explain. Thank you
Expert Solution
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Retained earnings of the business means accumulated earnings of the owner that is fully payable to Owner only. This is an important part or segment of equity of the business.
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