Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Universities & Colleges (https://www.askmehelpdesk.com/forumdisplay.php?f=399)
-   -   Retained profit (https://www.askmehelpdesk.com/showthread.php?t=684457)

  • Jul 18, 2012, 08:16 PM
    Angela Keh
    Retained profit
    Anyone can explain for me why retained profit of a company increase?
  • Jul 19, 2012, 01:09 PM
    pready
    Companies sell a product or provide a service so they charge a fee for this, which is called revenues. If revenues exceed the company's expenses then they will have net income. Net income that is retained by a company is called retained earnings.

    At the end of each accounting period if there is net income by a campny the company will usually retain or should retain a portion of their net income. Retained profit, which is otherwise known as retained earnings increases because at the end of an accounting period a company will retain their net income for future plans like for expanding the company.

  • All times are GMT -7. The time now is 07:45 AM.