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The usual presentation of the retained earnings statement is (1) Beginning balance, (2) Net income or loss, (3) Dividends, (4) Stockholders' contributions, (5) Ending balance.
Horizontal Analysis
A financial analysis technique that compares historical financial data over a series of reporting periods, using a base year as a comparison.
Vertical Analysis
A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.
Percentage Analysis
A financial analysis technique that evaluates the proportion or percentage change of individual components in financial statements over time.
Adjusting Entry
Accounting records created at the closing of a fiscal period to distribute expenses and revenues to the time they were truly incurred.
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