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How to Calculate Retained Earnings?

Balance sheets provide the basis for computing rates of return for investors and evaluating a company’s capital structure. The retention ratio helps investors determine how much money a company is keeping to reinvest in the company’s operation. If a...

Matching principle Wikipedia

This concept applies to all kinds of business transactions involving assets, liabilities and equity, revenue and expense recognition. In this situation, the marketing would be recorded on the income statement when the ads are displayed rather than when the revenues...