Does retained earnings make part of a company's total equity???

Question

When calculating a company's total equity, do we add up shareholder equity and retained earnings??? Ort its jus shareholder equity???? HELP!!!

Answer 1

Yes, retained earning or free reserves form part of the equity. The other entity that forms the equity is number of shares outstanding multiplied by the par value. Some times there is a paid up value above cash which also forms part of equity. When stock dividends are given this retained earnings are actually converted into shares. So both form total equity.

Answer 2

The retained earnings are part of shareholder equity.

Answer 3

Yes, retained earnings is part of the equity section.

Under the equity section you'd have: stockholders'/owners' equity, retained earnings, and net income.

Net income is the current years income and retained earnings is all prior years' income (loss).

Answer 4

Definately. A basic look at equity is:

Assets - Liability = Equity

Retained Earnings is an Asset

Answer 5

Stockholder's equity, simply, is the sum of all assets, including buildings, materials, inventory, goodwill, etc. less all debts, including taxes owed but not paid, salaries owed but not paid, invoices owed but not paid, reserves for loss, etc.

Answer 6

yes