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The two main categories of Stockholder's Equity are Capital Stock and Retained Earnings.
Capital stock is the initial amount of money invested into the firm by its owners. The way the capital stock is structured depends on whether the firm is incorporated or not, and if it is, whether the corporation is publicly or privately held.
Retained earnings is the cumulative income a company earns and decides to invest back into the firm (as opposed to paying it out as dividends to the owners). In any given year, Retained Earnings is equal to the last year's retained earnings plus current year net income, minus any dividends paid out to the owners.
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What is average owner's equity?
(Owner's Equity [beginning] + Owner's Equity [end])/2 (/2 means divided by two)
How Report-form and account-form balance sheets differ?
Presentation form of a balance sheet, which generally follows one of two formats: (1) the traditional form called the account form, which presents assets on the left and liabilities and owner's equity on the right; and (2) the report form, which presents assets above, liabilities and stockholders' equity below. Both types of format are widely used.
What is an expanded basic accounting equation?
The expanded accounting equation replaces Owner's Equityin the basic accounting equation (Assets = Liabilities + Owner's Equity) with the following components: Owner's Capital + Revenues - Expenses - Owner's Draws. In other words, the expanded accounting equation for a sole proprietorship is: Assets = Liabilities + Owner's Capital + Revenues - Expenses - Owner's Draws.In the expanded accounting equation for a corporation, Stockholders' Equity in the basic accounting equation (Assets = Liabilities + Stockholders' Equity) is replaced by these components: Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. The resulting expanded accounting equation for a corporation is: Assets = Liabilities + Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock.The expanded accounting equation allows you to see separately (1) the impact on equity from net income (increased by revenues, decreased by expenses), and (2) the effect of transactions with owners (draws, dividends, sale or purchase of ownership interest).
Doublewide Dealers has an ROA of 10 percent a 2 percent profit margin?
Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05
How does a stock repurchase affect the accounting equation 1 Decrease asset increase equity 2 Increase asset decrease liability 3 Decrease equity increase liability 4 Decrease asset decrease equity?
Decrease asset; since repurchase is with cash, whis is an asset Decrease equity; if repurchased stock is not to be reissued, it is declared void and the number of outstanding assets is decreased. Hence, equity is decreased.
What is average owner's equity?
(Owner's Equity [beginning] + Owner's Equity [end])/2 (/2 means divided by two)
What is the name of the state that is divided into 2 parts by water?
Michigan is divided into 2 parts by water.
How many body parts is a moth divided into?
Moth is divided into three parts
What is a divided into two equal parts?
If A is a variable then it is a/2 which can also be expressed as A divided by 2.
What are the 2 parts the Caribbean is divided into?
The Greater Antilles and the Lesser Antilles are the two parts the Caribbean is divided into.
Which state is divided in to 2 parts?
michgan
Explain why 2 tenths is larger than 2 hundredth?
I can but try. 2 tenths is 2 divided into 10 parts. 2 hundredths is 2 divided into 100 parts. Since the latter is "chopped up" into more parts, each part is smaller.
What state in divided into 2 parts by a lake?
Michagan
What is the state that is divided into 2 parts by water?
Michigan.
How many parts is earth divided into?
3
What is divided into six equal parts?
it equals 2
How many main parts are arachnids divided into?
It has 2 body parts. Head and thorax
