Net income is equal to revenues minus expenses. Corporate net income minus dividends declared is equal to that corporation's change to its retained earnings due to the company's running of its ...

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 ...

At the end of every accounting period, you must close the balances in your sales and expense accounts. You open the income summary account to hold these account balances during the closing process.

Revenue and retained earnings provide insights into a company’s financial performance. Revenue is a critical component of the income statement. It reveals the "top line" of the company or the sales a ...