What is retained earning? what is its impact in financial statement?

refer to the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt. It is recorded under shareholders' equity on the balance sheet.

They represent the company's remainder of earnings that are not paid out in dividends but are retained by the company to pay off existing debt or to be reinvested into company growth.

Retained earnings represents earnings of past year and not distributed to stake holders and it shows company financial strength and internal fund deployed then outside finance. If rate of earning is higher than borrowing rate then its sign of good management but if rate of earning is lower then market rate of return then its sign of reserved or orthodox management.

Retained earning is a part of equity and its contains all the profits from the previous year cumulative.

Retained earnings is a reserve account and is a part of shareholder's equity in the company. It represents the cumulative loss/profits  made by the company right from incorporation to current date