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). […]
Recent Comments