Are retained earnings the same as net income?

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What goes in the retained earnings? If net income is posted in the retained earnings then why net income and retained earnings are not the same in the financial statements that I have?

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score 0 · Answer 1 · 2012-12-02T19:14:51+00:00

No, these two are not the same! Retained earnings is the accumulated net income less any dividends paid.

So the retained earnings account includes the net income for the year plus the net income for all previous years less any dividend paid etc.