If a company has a high retained earnings percentage, it keeps more of its profits and reinvests them into the business, which indicates success. Companies can […]

This is the practice of recording and reporting financial transactions and cash flows. This type of accounting is particularly needed to generate financial reports for the […]

This preserves the balance in the accounting equation—assets and liabilities decrease, but equity remains the same. Let’s say there were a credit of $4,000 and a […]

Whether an ROE is deemed good or bad will depend on what is normal among a stock’s peers. For example, utilities have many assets and debt […]