The additional paid-in capital you see above the line is from additional sales of shares, which dilutes ownership. Remember that your company’s retained earnings account will decrease by the amount of dividends paid out for the given accounting period. When calculating retained earnings, you’ll need to incorporate all forms of dividends; you’ll see that stock […]
This is understandable since the mortgage rate makes such a difference to the lifetime cost of the loan. Many home buyers wish they could go back in time to just a few years ago, when rates were far lower. And thanks to its affordable payments and much longer payoff timeline, it’s now the most popular […]
Another disadvantage is that while depreciation allows businesses to spread out the cost of an asset over its useful life, it doesn’t account for changes in market value or inflation. This means that assets may lose value faster than expected due to external factors, but their book value will remain unchanged until they’re disposed of. […]