🎥+✏️Preparing Financial Statements🟢

Responses

1. 

   Vanessa Londono 5 October 2024

   Hello, is “Statement of Retained Earnings” same that “Statement of Owner’s Equity”?

   1. 

      Maroun, CPA 9 October 2024

      Hello Vanessa,

      Statement of Retained Earnings is a component of the Statement of Owner’s Equity.
      Statement of Retained Earnings focuses solely on the changes in retained earnings over a period. Retained earnings are the portion of a company’s profits that are kept (or retained) in the business, rather than being distributed as dividends to shareholders. The statement typically starts with the beginning retained earnings balance, adds net income (or subtracts a net loss), and subtracts dividends to arrive at the ending retained earnings balance.

      Statement of Owner’s Equity provides a broader picture. It includes all changes in the equity section of the balance sheet, not just retained earnings. In addition to retained earnings, it shows changes from owner contributions, withdrawals (for sole proprietorships or partnerships), and other adjustments like unrealized gains or losses, if applicable. For corporations, it includes things like common stock, preferred stock, and additional paid-in capital.

      I hope this helps!

      1. 

         Vanessa Londono 27 October 2024

         Thank you!

         1. 

            Maroun, CPA 28 October 2024

            You’re most welcome!

2. 

   Alex Delk 13 January 2025

   The linked download for the slides is wrong on my end it shows the slides for the next video titled business structure but and not the slides connected to the ones in this video