Dear All:
REO= NI/Equity
Is the Equity = Retainied earnings or total Equity in the balance sheet?
thanks
Dear All:
REO= NI/Equity
Is the Equity = Retainied earnings or total Equity in the balance sheet?
thanks
RE is a component of equity. RE + capital stock + additional paid in capital - treasury stock will = equity (assuming no pf or odd shares). Assets - liabilities = OE which will include RE
By the way. Are you a level II or level I candidate? This is a level I topic.
This is a first year accounting topic.
Equity=Shareholder’s Equity