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Accounting Solver

Archive for the ‘Drawings’ Category

October 22nd, 2007

UNDERSTANDING ACCOUNTING TALK 16: Growth in Equity

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). […]

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