Net retained earnings of private enterprises should be added in operating surplus
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Yes, net retained earnings of private enterprises should be added in operating surplus
Explanation:
Yes, net retained earning of private enterprise should be added in operating plus.
Operating surplus is the addition of (rent, royalty, profit and interest).
Net retained earning is the earning of a enterprise which is retained by the enterprise at a particular period of time. It is a profit that is paid to shareholders. It is our profit.
In order to evaluate Retained Earnings, the balance of Retained Earnings from beginning is added into the net loss or income and we subtract the payouts of dividend.
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