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What Is a Statement of Shareholder Equity?

A statement of shareholders’ equity is a valuable tool for gauging a business’s health for the following reasons. The following calculation example shows how stockholders’ equity can change from the beginning to the end of an accounting period. When looking at Apple’s...

What is Cash Operating Cycle in Accounting?

On January 15, Big Dog received a $400 cash payment in advance of services being performed. As a result of this entry, salaries expense is reported on the January income statement when cash is paid. The preceding entry has no effect on expenses reported on the...