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Why are retained returns not considered an asset of the firm?
29Mar2008 Filed under: CorporationsI am taking a corporate nouns class and I am have trouble getting final to my roots on why exactly this is true.
Answers:
You own the right impression collectively. Retained proceeds (credit balance) method the co. have made profits. But remember credits must be on the edge by debit. The retained proceeds plus the share income are represented by adjectives the web assets (net debits) of the co. (all the assets smaller quantity the liabilities)
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