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- In governmental accounting, retained earnings are referred to as follows:
- In governmental funds (e.g., general fund, capital projects fund), it is called fund balance.
- In proprietary funds (e.g., water fund, sewer fund), it is called net position1.
- Retained earnings represent the earned capital of the reporting entity, consisting of undistributed income that remains invested2.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.In governmental accounting, we have specific names for retained earnings as well, depending on fund type. In governmental funds, like the general fund and capital projects fund, retained earnings is called fund balance. In proprietary funds, like the water fund and sewer fund, retained earnings is called net position.resources.auditor.utah.gov/s/article/Fund-BalanceRetained earnings represents the earned capital of the reporting entity. Earned capital is the capital that develops and builds up over time from profitable operations. It consists of all undistributed income that remains invested in the reporting entity. Retained earnings (or accumulated deficit) should be stated separately on the balance sheet.viewpoint.pwc.com/dt/us/en/pwc/accounting_guide… - People also ask
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