A classified balance sheet shows its three main sections -- assets, liabilities and stockholders' equity -- as subcategories to aid financial statement users in identifying different types of items.

Retained earnings represent the accumulated net income your business keeps after paying all costs, expenses and taxes. The retained earnings balance changes if you pay your stockholders a dividend. If ...

Most business owners are familiar with the term “net income.” But what about “retained earnings?” This financial metric is just as important as net income, and it’s essential to understand what it is ...