Tag: Retained Earnings
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Financial Statements for the Small Business
Financial statements serve the purpose of presenting economic activity and status related to a particular date and over a particular time frame. Accountants record monetary transactions and via financial reports present the information in an easy to understand format.
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Retained Earnings – How it Works
In the equity section of the balance sheet there is an account that tallies the lifetime earnings net of dividends for the company. This account is referred to as the Retained Earnings of the business.
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Capital Account – Business Partnerships and Limited Liability Companies
A ‘Capital Account’ is a term used in partnership and in limited liability company business formats. It refers to the individual balances in the equity section of the balance sheet. The basic formula for value is beginning balance plus contributed capital plus earnings from the current accounting period less any withdrawals