How Do You Spell RETAINED PROFIT?

Pronunciation: [ɹɪtˈe͡ɪnd pɹˈɒfɪt] (IPA)

Retained profit is a financial term used to describe the amount of earnings a company has kept after paying out dividends to shareholders. Its spelling is broken down into three phonetic sounds: /rɪteɪnd/, /ˈprɒfɪt/. The first sound is pronounced as "ri-tain-d", with emphasis on the second syllable, and represents the verb "retain." The second sound, "prof-it," represents the noun "profit," and is pronounced as "prawf-it." Combined, these sounds create the term for earnings that a company has chosen to keep instead of distributing to shareholders.

RETAINED PROFIT Meaning and Definition

1. Retained profit, also known as retained earnings or accumulated earnings, refers to the portion of a company's net income that is retained or kept within the business after paying out dividends to shareholders. It represents the cumulative amount of profits that have been reinvested in the company rather than distributed to its owners or used for other purposes.

   Retained profits can be thought of as the savings or reserves of a company, as they accumulate over time and contribute to the overall financial strength and stability of the business. This retained profit can be used for various purposes, such as funding future expansion plans, investing in new projects, repaying debt, or making acquisitions. It essentially provides a source of internal financing that allows a company to finance growth and other activities without relying solely on external sources of funding, such as borrowing or issuing new shares.

   The amount of retained profit can be found on a company's balance sheet under the shareholder's equity section. It is calculated by subtracting dividends paid to shareholders from the net income earned during the period. Retained profit can either be positive, indicating that the company has accumulated profits, or negative, indicating that the company has incurred losses or paid out more in dividends than its net income.

   In summary, retained profit is the portion of a company's earnings that is reinvested back into the business, contributing to its financial resources and allowing for future growth and financial stability.

Common Misspellings for RETAINED PROFIT

• eetained profit
• detained profit
• fetained profit
• tetained profit
• 5etained profit
• 4etained profit
• rwtained profit
• rstained profit
• rdtained profit
• rrtained profit
• r4tained profit
• r3tained profit
• rerained profit
• refained profit
• regained profit
• reyained profit
• re6ained profit
• re5ained profit
• retzined profit
• retsined profit

Etymology of RETAINED PROFIT

The word "retained profit" is not derived from a specific etymology. Rather, it is a combination of words with distinct origins:

1. Retained: The word "retained" comes from the Old French word "retenir", which means "to hold back, keep back, remember". It entered English in the 14th century and refers to something that is kept or preserved.

2. Profit: The word "profit" originated from the Latin word "proficere", which means "to make progress, advance" or "to benefit". It entered Middle English in the 14th century and refers to the financial gain obtained from a business or investment.

When "retained" and "profit" are combined, "retained profit" refers to the portion of a company's profit that is kept or saved within the business instead of being distributed to shareholders or owners.