Question

Are Retained Earnings Apart of Current liabilities?

Are Retained Earnings Apart of Current liabilities?

Homework Answers

Answer #1

Answer - Yes The Retained Earnings are Different from the Current Liabilities.

Retained Earnings are the portion of a business’s profits that are not distributed as dividends to shareholders but instead are reserved for reinvestment back into the business.

Retained Earnings are reported on the balance sheet under the shareholder’s equity section at the end of each accounting period.

On the Other hand the Current Liabilities are  the debts a company owes that must be paid within one year.

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