Explain the following in non-technical language that a business person who has not read this text would
Question:
Explain the following in non-technical language that a business person who has not read this text would understand:
a. Why is net profit part of shareholders’ equity?
b. Why are dividends to shareholders not considered to be an expense in calculating net profit? Employee wages are considered to be an expense, as is the cost of products delivered to customers, and shareholders must be kept happy, as must employees and customers.
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a Net profit is the amount of money a company has left after paying all its expenses like employee w...View the full answer
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Related Book For 
Financial Accounting An Integrated Approach
ISBN: 9780170411028
7th Edition
Authors: Ken Trotman, Elizabeth Carson
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