Sample content ACC 557 Week 7 DQ2 “Retained Earnings” Please respond to the following: The items contained in the Retained Earnings section of a balance sheet are often complex and confusing. Suggest an improvement for the reporting on this information that will help the users of the statement to have a better understanding of the activity. Provide support for your suggestion. Evaluate what a cumulative loss in the retained earnings section of a company’s balance sheet might indicate about the financial performance in the future, indicating how this may influence decisions made about the company. Provide support for your answer The goal for every business should be to successfully manage their company so that it creates $1 in market value for every $1 it has in retained earnings (Kennon). For example: “Microsoft has retained $18.9 billion in earning over the years. It has over 2.5 times that a

1. ACC 557 Week 7 DQ2
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Sample content
ACC 557 Week 7 DQ2
“Retained Earnings” Please respond to the following:

2. The items contained in the Retained Earnings section of a balance sheet are often
complex and confusing. Suggest an improvement for the reporting on this
information that will help the users of the statement to have a better understanding
of the activity. Provide support for your suggestion.
Evaluate what a cumulative loss in the retained earnings section of a company’s
balance sheet might indicate about the financial performance in the future,
indicating how this may influence decisions made about the company. Provide
support for your answer
The goal for every business should be to successfully manage their company so
that it creates $1 in market value for every $1 it has in retained earnings (Kennon).
For example: “Microsoft has retained $18.9 billion in earning over the years. It has
over 2.5 times that a
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