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How Do You Calculate Shareholders’ Equity?

Shareholders’ equity can also be calculated by taking the company’s total assets less the total liabilities. The account demonstrates what the company did with its capital investments and profits earned https://www.bookkeeping-reviews.com/the-beginner-s-guide-to-balance-sheets/ during the period. By comparing total equity to total assets belonging to a company, the shareholders equity ratio is thus a measure of the […]