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Owners’ Equity Paper
Essay specific features
Written by:
Todd F
Date added:
May 23, 2014
Level:
Grade:
A
No of pages / words:
2 / 429
Was viewed:
6082 times
Rating of current essay:
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...
displayed 300 characters
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