Introduction to the Basic Accounting Equation Financial Accounting

Changes to stockholder’s equity, specifically common stock, will increase stockholder’s equity on the balance sheet. The purpose of this article is to consider the fundamentals of the accounting equation and to demonstrate how it works when applied to various transactions. All assets owned by a business are acquired with the funds supplied either by creditors or by […]

Present Value Tables

This Present Value Calculator makes the math easy by converting any future lump sum into today’s dollars so that you have a realistic idea of the value received. It lets you clearly understand how much money you need to invest today to reach the target amount in the future. Also, it can help you make […]

What are Retained Earnings? Guide, Formula, and Examples

In other circumstances, investors trade stocks or invest for capital appreciation due to the growth created by reinvesting all profits. As a result, financial experts consider a firm’s retained earnings and its owner’s equity when analyzing its financial soundness. When a company conducts a share repurchase, it spends money to buy outstanding shares. The cash spent on […]