Owners’ Equity Paper

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Issue:

Business

 

Written by:

Todd F

 

Date added:

May 23, 2014

 

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Grade:

A

 

No of pages / words:

2 / 429

 

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5803 times

 

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Essay content:

Earned capital is the amount of money that is generated by the profitable operations of the company. (Investorwords, n.d.) It is important to keep paid-in capital separate from earned capital because paid-in capital is not a true reflection of a company’s performance. Net income is the source of earned capital...
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(Investorwords, n.d.) It is important to keep paid-in capital separate from earned capital because paid-in capital is not a true reflection of a company’s performance. Net income is the source of earned capital. If the two types of capital were not kept separate, the net income would be overstated and show that the company is more profitable than it really is...
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