Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Does the shareholders equity represent the savings a company has accumulated through the years?

Office Management Accounting Financial Accounting Financials Finance
user-image
Question added by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date Posted: 2014/03/16
Upvote (4) Views (2) Followers (2) Answers (1) Report Question
Write an Answer
Register now or log in to answer.
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

No. The number which appears in the Shareholder’s Equity of a company that was founded several years ago is just a number which balances the balance sheet. It does not have a clear economic meaning.

 

Write Your Answer
More Questions Like This