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-   -   Why is it important to keep paid-in capital separate? (https://www.askmehelpdesk.com/showthread.php?t=240093)

  • Jul 21, 2008, 05:26 PM
    Brianricha
    Why is it important to keep paid-in capital separate?
    Why is it important to keep paid-in capital separate from earned capital?
  • Jul 23, 2008, 08:34 PM
    segcor
    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.

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