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Balance Sheet Estions And Answers Pdf Multiple Choice Comparative Trading Profit Loss Account

Worksheet Details

  • CategoryBalance Sheet.
  • TopicBalance sheet interview questions and answers pdf.
  • AuthorTahlia Bancks
  • PostedThu, Jul 11th 2019 07:01 AM
  • Formatjpg/jpeg

How Is Equity Valued on a Balance Sheet Template? There are two types of capital that are typically put in the company. These are stock, contributed capital, etc. and then, the earnings of the company, usually called retained earnings. Capital that is contributed is pretty straightforward. If your assets are something other than cash, such as machinery, or stock in another business, use the rules for the valuation of assets. This means you should choose the lessor of cost or fair market value.

Retained earnings are a little different. Remember the formula for the balance sheet? (Assets = Liabilities + Equity?) If you’ve filled out the rest of your balance sheet template, then you will have only retained earnings left to work with. Therefore, retained earnings are equal to Assets – Liabilities – Contributed Capital.

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