One of the benefits of understanding how the income statement and balance sheet work together is that you can figure out missing pieces of information based on numbers elsewhere in the financial ...

A company's retained earnings measure the amount of money the company keeps from its profits after paying dividends. On a company's balance sheet, the retained earnings is included as part of the ...

The dollar value of a business is referred to as its equity. When a business is organized as a corporation, the term used on the firm's balance sheet is "stockholders' equity." For a small business ...

Almost everyone understands home equity — this private equity is the percentage of your home you own after paying down your mortgage. More technically, it’s the value of an asset, like property, minus ...

Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a ...