Are retained earnings a current liability?

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Do you know where should I include the retained earnings? Are they reported as part of the liabilities or the equity?

score 0 · Answer 1 · 2012-12-02T16:38:03+00:00

Remember the accounting equation which is asset equals liabilities plus equity.

Equity is the capital contribution plus any accumulated results (profits) less any dividends paid.

Therefore, the retained earnings are part of the equity!