The balance sheet gives an ... owners invest in the company, and retained earnings. Retained earnings are the portion of a company's profits that its owners do not withdraw from the company ...

Retained earnings is an equity account on a company's balance sheet that comprises its cumulative, undistributed earnings. When a company's books are closed at the end of its fiscal year ...

When paid, the stock dividend amount reduces retained earnings and increases the common stock account. Stock dividends do not change the asset side of the balance sheet—they merely reallocate ...

Both types of dividend reduce retained earnings and impact shareholders' equity. However, only cash dividends reduce cash on the balance sheet. Retained earnings represent the cumulative net ...