Retained earnings is

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Retained earnings represent the cumulative earnings or losses of a corporation that have been retained by the business over time and not distributed as dividends to shareholders. As such, it is a part of the stockholders' claim on the total assets of the corporation. It is not necessarily equal to the amount of cash generated from operations and is not a part of the paid-in capital. Retained earnings are not closed at the end of each accounting period; they carry forward as a cumulative balance on the balance sheet.

Retained Earnings Is