Discussion of Owner's Equity
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Words: 437
Pages: 2
(approximately 235 words/page)
Pages: 2
(approximately 235 words/page)
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Discussion on Owners' Equity
<Tab/>Stockholder's equity represents the owner's residual interest in the assets of the corporation. It is broken down into two components. Paid-in-capital amounts received from owners for shares of the corporation's stock. Earned capital, also known as retained earnings is the amount of net income retained by the corporation. Paid-in-capital includes stocks accounts, such as, preferred stock and common stock. Owners of preferred stock generally does not
showed first 75 words of 437 total
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showed first 75 words of 437 total
showed last 75 words of 437 total
more accurate reflection of a company's earning. <Tab/>Owners' equity in a corporation is defined as stockholder's equity, shareholders' equity, or corporate capital. Stockholders' equity is the difference between the assets and the liabilities of the enterprise; Stockholders' equity represents the cumulative net contributions by stockholders plus earnings that have been retained. Stockholders' equity grows if the enterprise is profitable. It can shrinks, or disappear altogether, if the enterprise is unprofitable.
more accurate reflection of a company's earning. <Tab/>Owners' equity in a corporation is defined as stockholder's equity, shareholders' equity, or corporate capital. Stockholders' equity is the difference between the assets and the liabilities of the enterprise; Stockholders' equity represents the cumulative net contributions by stockholders plus earnings that have been retained. Stockholders' equity grows if the enterprise is profitable. It can shrinks, or disappear altogether, if the enterprise is unprofitable.