Nonprofits and "retained earnings"

Paul Danaher · 2006-05-09T13:58:29+00:00

I've read the manuals and help screens and checked various articles on QB's treatment of "retained earnings" for nonprofits, but at the end of the day I still have a dumb question. I'm looking at "total liabilities and equity" and under "current liabilities" I see a credit line which has been drawn down. Further down there's a substantial negative entry for "retained earnings", reduced by "net income".Now, my understanding of this substantial negative figure is that it represents cumulated net losses for preceding years. These would explain the substantial outstanding revolving loan. Is this interpretation accurate? And how on earth do I explain to my financially even-more-unversed colleagues that the "total equity" doesn't really reduce "total liabilities" at all?

May 09, 2006 21 Replies

Rate this thread:

!-! 20 years ago

Are you using a Windows version, or Mac? If Windows, does "'03" mean "v. 3" or "2003"?

Certainly the last 10 Windows versions have allowed changing the names of Retained Earnings and Undeposited Funds as others have already described. Mac versions are different in many respects, and I'm uncertain about this capability in Windows versions more than 10 years old.

Vote

Allan Martin 20 years ago

You solved the not for profit retained earnings problem. The OP is using a version over ten years old.

Vote

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required