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QuickBooks 2009 on Demand by Laura Madeira, CPA Gail Perry

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Chapter 16. Recording Owners’ Equity

<feature><title>What You’ll Do</title> <objective>

Understand the Opening Balance Equity Account

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<objective>

Record Owners’ Draws

</objective>
<objective>

Enter Prior Period Adjustments

</objective>
<objective>

View Contents of Retained Earnings Account

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When describing different types of accounts, the phrase net worth is often applied to the sum of a company’s equity accounts. If you add up all the value of the company’s assets (items the company owns) and then subtract the company’s liabilities (amounts owed to others), you are left with the net worth of the company, or its equity.

Although you can take a shortcut and determine net worth by subtracting liabilities from assets, for ...

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