Owners’ Equity

Essay specific features

 

Issue:

Business

 

Written by:

Brett H

 

Date added:

October 5, 2016

 

Level:

 

Grade:

A

 

No of pages / words:

2 / 414

 

Was viewed:

7187 times

 

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Essay content:

The distinction between paid-in capital and retained earnings is important from a legal and an economic point of view. Paid-in capital is the amount paid in to the corporation by stockholders in exchange for shares of ownership. Retained earnings are earned capital held for future use in the business...
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The primary objectives in accounting for the issuance of common stock are to (1) identify the specific sources of paid-in capital and (2) maintain the distinction between paid-in capital and retained earnings. Investors often use the dividend per share as a measure to determine the real value of a share...
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