Asked by Doris Mansueto on May 08, 2024
Verified
Most companies report restrictions of Retained Earnings by using a footnote to the Retained Earnings account.
Retained Earnings
The portion of a company's profits that is saved or retained and not distributed among shareholders as dividends, often reinvested in business operations.
Footnote
A footnote in financial statements is an additional note provided at the bottom of a financial document, offering further explanation or disclosure about the figures presented.
- Comprehend and pinpoint the disclosures in financial statements linked to restrictions on retained earnings.
Verified Answer
Learning Objectives
- Comprehend and pinpoint the disclosures in financial statements linked to restrictions on retained earnings.
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