- Retained earnings (accumulated deficit.
- Appropriations are actually segregations of retained earnings.
- These expenses will likely decrease retained earnings.
- To close the Dividends account at year-end by transfering its debit balance into the Retained Earnings account.
- Until closing, this account is classified as a contra account to Retained Earnings.
- Contingent reserve Retained earnings appropriated in anticipation of possible future losses or expenses.