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Essay Details:
Essay text:
shareholders) to
acquire their ownership interest
? Retained Earnings?net profits (revenues minus expenses) earned by the company
over the years that have not yet been withdrawn (i.e. paid to shareholders as
dividends)
NOTE: Liabilities and Owners' Equity show the sources of funds to acquire the assets?
amounts invested by owners (paid in capital portion of Owners' Equity), reinvestment of
profits (retained earnings portion of Owners' Equity) or amounts borrowed (Liabilities)
ACCOUNTING FOR BUSINESS TRANSACTIONS
GAAP requires use of accrual method of accounting rather than cash basis accounting...
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