In accounting terms, retained earnings refers to the portion of net incomeretained by a corporation rather than distributing as dividends to its stockholders. Same which true if a corporation has a net loss, the accumulated losses are calledretained losses or deficit.There are two types of retained earnings; unappropriated and appropriatedretained earnings. The first could be distributed as dividends to stockholders; whereas, the latter is earmarked for something such as appropriated for capital asset acquisitions, etc. Note that appropriated retained earnings is not available for distribution as dividends to stockholders.