What’s a retained earnings statement?

A statement of retained earnings details how much of a company’s earnings were kept within a given time period, and is used to track fluctuations in retained earnings. It shows the current equity of a company and is important for tax purposes. A statement of retained earnings is an accounting term used to describe a […]

What’s a retained placenta?

Retained placenta is a rare complication during the third stage of labor where the placenta is not delivered. Medical intervention is required to remove it, and it can be dangerous. The reasons for this complication include uterine atony, trapped placenta, and placenta accreta. The risks of a retained placenta are bleeding and uterine infections. Signs […]

Retained earnings tax: what is it?

Retained earnings tax is an additional tax paid by corporations that choose to retain earnings instead of paying dividends, calculated in addition to regular corporate income tax. The tax encourages dividends and minimizes tax loss for the government. Retained earnings tax is an additional business tax paid by corporations that choose to retain retained earnings […]

What’s a retained earnings tax?

Governments impose a retained earnings tax on corporations that accumulate savings above a certain threshold, to make up for income lost through the non-distribution of dividends. This tax is aimed at combating the practice of hoarding cash to avoid double taxation. A retained earnings tax is an income tax assessment on corporate savings that exceed […]

What’s a Grantor Retained Annuity Trust?

A Grantor Retained Annuity Trust (GRAT) is an irrevocable trust used in estate planning to reduce inheritance or gift taxes. The grantor receives a regular income for a set period, after which the remaining assets are transferred to a beneficiary. A Grantor Retained Annuity Trust (GRAT) is an estate planning tool used to reduce the […]

Appropriate retained earnings?

Retained earnings are profits kept by a company for internal use or future investments, and can be divided into appropriate and inappropriate categories. The accounting equation helps determine retained earnings, and investors can find information on a company’s retained earnings in quarterly or annual reports. The appropriate amount of retained earnings and their specific use […]

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