Owners’ Equity

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Brett H


Date added:

October 5, 2016







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2 / 414


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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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