TRUTH WELL-TOLD is the corporate motto of McCann Erickson (one of the leading advertising agencies in the Philippines). What you tell or show to your consumers and the general public should not only be accurate and true, but it should also catch their attention and make them passionate about your products and services. […]
For many of us 9 to 5 drudges, our only assets (little cash, mortgaged house, car not fully paid, clothes, etc) are non-earning assets. The only earning asset we have is our time, our manhours, for which we get paid and by which we dream to own earning assets in the future (stocks, real […]
From the discussions of the generally and commonly used listing of Liabilities and Equity in a Balance Sheet (posts 11 through 16), the basic accounting equation can thus be re-stated in more detail:
Retained Earnings (for corporations) and Drawings (for sole proprietorships & partnerships), from the stockholders’ & owners’/partners’ point of view, can serve the same […]
In addition to Stockholders’ Equity (for corporations & incorporated small businesses), the other item listed under Equity is Retained Earnings where the Net Income (i.e. Revenues or Income minus Expenses) is accumulated.
Equity is increased through the issue of new shares of stock (which are paid for either by existing stockholders or by new subscribers). […]
In the Balance Sheet of a corporation, Stockholders’ Equity (or Paid-Up Capital) is usually expressed as a number of shares of stock with each stockholder owning a definite number of stocks (recorded in a Stock & Transfer Book). Each share of stock has a stated par value; and the total number of shares multiplied […]
In the basic accounting equation:
Assets = Liabilities + Equity
Equity is where a business starts. There is no business entity (corporation, small business or proprietorship) which starts with a Liability.
The incorporating stockholders or proprietor may have borrowed the money to put into the business as Equity, but this is not the […]
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