Title: Owner’s Equity Cycle Paper

Essay Details

Subject: Business
Author: Brett H
Date: January 12, 2015
Level: University
Grade: B
Length: 3 / 687
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

While I analyzed the meaning of each area in question I discovered just how much I lacked in understanding of the subject. What I thought would be a simple answer to each of these questions now became more complicated, therefore, I am going to explain what I believe the answer is for each of these question based on what I have read...

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Earned capital is the capital that develops from profitable operations of a company. The reasons I believe paid-in-capital and earned capital should be kept separate is to see exactly how a company is performing because the goal of a company is to make a profit for its investor. This is only one reason to keep paid-in-capital and earned capital separate, another reason would be that earned capital is taxed not paid in capital, if these two items were not separated I would think that it could cause a misrepresentation of revenues earned for stockholders and tax agencies...

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