Revenue Reserves - Retained Earnings, Finance Basics

Assignment Help:

Revenue Reserves - Retained Earnings

These are undistributed earnings.  Those reserves are retained for the given reasons like:

A. To create up for the fall in profits so as to maintain acceptable risks.

B. To sustain growth via plough backs. Such are cheap source of finance.

C. They are required to boost the company's credit rating thus they enable more finance to be received.

D. It lowers the company's gearing ratio - reduces chances of liquidation/receivership.

 


Related Discussions:- Revenue Reserves - Retained Earnings

Example of replacement of assets, Example of Replacement of Assets Est...

Example of Replacement of Assets Estate Developers purchased a machine five years ago on a cost of £7,500.  The machine had a probable economic life of 15 years at the moment

Calculate total number of ordinary shares, Calculate total number of ordina...

Calculate total number of ordinary shares Example Company XYZ Ltd has sold 10,000 ordinary shares of Shs.30 as partly called up plus 20,000 Shs.45 preference shares, tha

Operations Management, You need cash and FAST! You jump out of your car at...

You need cash and FAST! You jump out of your car at a location known to have one ATM, but a history of a line. Usually you can expect to wait 200 seconds from the time you arrive

Capital asset pricing model (capm), Capital Asset Pricing Model (CAPM) ...

Capital Asset Pricing Model (CAPM) CAPM is a methods that is used to establish the required rate of return of an investment provided a particular level of risk.  According to

Define the term - right issues, Define the term - Right Issues If an...

Define the term - Right Issues If an existing company intends to raise extra funds, it can do so by borrowing or b issuing new shares. One of the most general methods for a

Foreign credit insurance association (fcia), Foreign Credit Insurance Assoc...

Foreign Credit Insurance Association (FCIA) An agent of the Export/Import Bank, FCIA gives exporters with insurance coverage beside both commercial and political risk. The main

Hi, continous time finaince expert

continous time finaince expert

Student, evaluate the importance of leverage in financial management of a s...

evaluate the importance of leverage in financial management of a small scale company

Calculate the current price of the common stock, Church Inc. is presently e...

Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 25% f

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd