Enterprise glossary and term center
Research and understand all the intricate terms and definitions that surround the ecosystem of enterprise resource planning (ERP), enterprise software and no-code tools.
- Enterprise terms
- Retained Earnings
- What is the difference between retained earnings and retained profit?
Retained Earnings - What is the difference between retained earnings and retained profit?
Retained earnings are either reinvested in the company to assist with stabilization and expansion or retained to strengthen the company's balance sheet. Profits retained by the company become equity and appear on the balance sheet as a component of owners' equity.