Thursday, December 15, 2011

Is the retained earnings in the balance sheet classified as current or noncurrent?

I know assets and liabilities can be classified as current or noncurrent. Can stockholders' equity also be classified as current or noncurrent?|||Neither. Current vs noncurrent is regarding assets and liabilities only. This is to show liquidity. If you take current assets less current liabilities to determine liquid positon. Obviously if you take your net assets (current and non) less liabiliites (current and non) this ties to equity position (stock plus retained earning) which is what the companys net postion would be if assets and liabilities are disposed of assuming book values.

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