Читать книгу Accounting For Dummies - John A. Tracy - Страница 28

Here’s a teaser for you. If a business’s total assets equal $2.5 million and its total liabilities equal $1.0 million, we know that its total owners’ equity is $1.5 million. Question: Could the owners have invested more than $1.5 million in the business? Answer: Yes. One possibility is that the owners invested $2.5 million, but the business has so far accumulated $1.0 million of losses instead of making a profit. The accumulated loss offsets the amount invested, so the owners’ equity is only $1.5 million net of its cumulative loss of $1.0 million. The owners bear the risk that the business may be unable to make a profit. Instead of retained earnings, the business would report a $1.0 million deficit in its balance sheet.