Title: Owners’ Equity

Essay Details

Subject: Business
Author: Todd F
Date: January 22, 2015
Level:
Grade: A
Length: 2 / 414
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

The distinction between paid-in capital and retained earnings is important from a legal and an economic point of view. Paid-in capital is the amount paid in to the corporation by stockholders in exchange for shares of ownership. Retained earnings are earned capital held for future use in the business...

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The primary objectives in accounting for the issuance of common stock are to (1) identify the specific sources of paid-in capital and (2) maintain the distinction between paid-in capital and retained earnings. Investors often use the dividend per share as a measure to determine the real value of a share...

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