Why is it important to keep paid-in capital separate from earned capital?
![]() |
Why is it important to keep paid-in capital separate from earned capital?
It is important to keep paid-in capital separate from earned capital because they are two different sources of funds. The first is from investors and the second is from earnings. That way, users understand the cummulative financial position from those two sources and can evaluate the position as a going concern.
All times are GMT -7. The time now is 09:33 AM. |