The accounting equation, assets equals liabilities plus stockholders' equity, is the foundation of the balance sheet. The retained earnings account is part of the stockholders' equity section. The net ...

Accounting profit, calculated as revenue minus all costs, directly impacts stock prices. Economic profit includes opportunity cost, providing deeper insight into resource utilization. Cash flow, often ...

Maximizing profit is a goal for all businesses if they aim to keep their doors open, but there are circumstances when even a profitable business might shut down. Different measures of profit are used ...

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.