In accounting, there are multiple types https://www.bookstime.com/articles/financial-risk of accounts classified as assets, liabilities, equity, revenues or expenses. Further than that, accounts can be considered a permanent account or a temporary account. Therefore, the retained earnings account shows the earnings that are kept, net income fewer dividends in the business. Moreover, the closing procedure shows that revenue, expense, and dividend accounts are retained earnings subcategories. Struggling with Financial Accounting? This process updates retained earnings and resets the income summary account to […]
