What is a Cost? Definition Meaning Example

Cost is the monetary value of goods and services purchased by producers and consumers. For example, a consumer typically equates cost with the price of a good (such as a loaf of bread, a pair of shoes, or a car) or a service (such as a haircut or a night in a hotel). Fast-forward to […]

Retained Earnings in Accounting and What They Can Tell You

The additional paid-in capital you see above the line is from additional sales of shares, which dilutes ownership. Remember that your company’s retained earnings account will decrease by the amount of dividends paid out for the given accounting period. When calculating retained earnings, you’ll need to incorporate all forms of dividends; you’ll see that stock […]