A credit balance in Retained Earnings indicates that a company's lifetime earnings exceeded its lifetime losses and dividends issued.

Name: A credit balance in Retained Earnings indicates that a company's lifetime earnings exceeded its lifetime losses and dividends issued.
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

A credit balance in Retained Earnings indicates that the company has retained more earnings than it has paid out in losses and dividends, which implies that the company has made a profit over its lifetime.

A Credit Balance in Retained Earnings Indicates That a Company's