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Compare and contrast the various types of equity accounts on a balance sheet.

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Compare and contrast the various types of equity accounts on a balance sheet.

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The various types of equity accounts shown on balance sheet are:

Paid in Capital: This is the fund or capital provided by equity investors in the stocks of the company.

Retained Earnings: This is the accumulated earnings which has been reinvested in the company.

"Paid-in" capital (or "contributed" capital) is that section of stockholders' equity that reports the amount a corporation received when it issued its shares of stock. Over the life of a corporation it has two choices of what to do with its net income: (1) pay it out ...

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