The three primary sections of a balance sheet are assets, liabilities and stockholders' equity. Liabilities and equity are the two sources of financing a business uses to fund its assets. Liabilities ...
Stockholders’ equity refers to the assets of a company that remain available to shareholders after all liabilities have been paid. This number can be positive or negative. Positive stockholder equity ...
Stockholders' equity is what's left when you take a company's assets and subtract its liabilities. Therefore, knowing the ending stockholders' equity balance for a particular time period gives you a ...
Return on equity, or ROE, tells investors how much in profit a company makes for every dollar it has in stockholder equity on its balance sheet. However, in some cases, the amount of stockholder ...
Companies often hold investments on their balance sheets, and for accounting purposes, these investments fall into different categories. One category includes what are known as available-for-sale ...
When your company makes a profit, you can issue a dividend to shareholders or keep the money. The profits you keep are called retained earnings. You can use retained earnings to fund working capital, ...