I don't like accounting, I'm so confused! Maybe an example will help? Thanks in advance
2007-03-20 14:18:25 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
No. Shareholder's equity (owner's equity) does contain an element of profit/loss called retained earnings, but it also has an element of paid in capital and common stock. Generally speaking, if a company does no stock issuance or buy backs in a given year, its shareholder's equity will change from 1 year to the next by the amount of profit/loss. This is because retained earnings will change by the year's profit/loss, but there will be no activity in the other shareholder's equity accounts.
2007-03-20 18:13:36 · answer #1 · answered by MagicalMke 4 · 0⤊ 0⤋
owners equity is what the total value of the business is for the owner: assets - liabilities = equity
profit and loss deals with how much business a company does in a certain time period
2007-03-20 21:27:00 · answer #2 · answered by notfromaround_here 4 · 0⤊ 0⤋
no
2007-03-20 21:21:56 · answer #3 · answered by Jo Blo 6 · 0⤊ 0⤋