Retained EarningsFund Balance Auditor State Oh Form

Instructions and help about Retained EarningsFund Balance Auditor State Oh

in this presentation we will take a look at the audit process related to retained earnings and dividends now when we consider retained earnings note that we're thinking about the balance sheet we're in the equity section and specifically we are in retained earnings what is retained earnings it's gonna be that account that's the accumulation of earnings over time so whenever we close out in essence the income statement the net income you'll recall is gonna be increasing retained earnings and retained earnings then going up by the net income down by a loss if the company happened to have a loss and then it's gonna be down going down by any dividends that we take out so when we take the dividends and pay the earnings that have been retained from the company for the income that's accumulated over time and then accumulated in the account of retained earnings we then pay it to the owners at some point hopefully in the form of dividends and the dividends then of course are kind of like drawer