Statement of Shareholders' Equity

Definition

A report showing changes in shareholder equity over a period—essentially, how much of the company owners actually own after all profits, losses, and dividends.

Example Usage

The statement of shareholders' equity showed that net income increased equity by $2 million, while dividends reduced it by $500,000.

Origin

Required financial statement from 20th-century accounting standards

Fun Fact

This statement is often overlooked but reveals important info about capital structure and retained earnings.

Source: Standard accounting practice

Related Terms

Advanced

Quantitative Easing

When the central bank prints money and buys stuff to stimulate the economy, which is basically a cheat code that would get you banned if the economy were a video game. It sounds sophisticated, but it's the monetary equivalent of fixing a leaky boat by adding more water.

💰 Finance / Accounting

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waterfall distribution

The predetermined order in which cash flows are distributed among different classes of investors, with senior investors getting paid before junior ones. It's like a literal waterfall—money flows down until each tier is satisfied.

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residue

The corporate equivalent of 'stuff we couldn't sell or use.' In finance and operations, it's what remains after you've stripped out all the valuable bits—technically still yours, but nobody wants to claim it.

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receivables

The collective pile of money that customers owe your business, representing either healthy cash flow or an impending collections nightmare depending on who's on the list. These are debts arising from sales on credit, sitting on the balance sheet as assets while you nervously check if people will actually pay. It's optimism quantified as a line item.

💰 Finance / Accounting

Beginner

prepaid

The art of paying now so you can avoid the awkwardness of paying later—basically, you've already surrendered your money to the corporate gods before actually using the service. It's the financial version of leaving an auto-tip.

💰 Finance / Accounting

Beginner

tax

Money the government extracts from your paycheck for the privilege of living in a civilized society with roads, schools, and bureaucrats. Beyond the transaction fees you pay for specific services, it's the general admission ticket to citizenship. Can also mean any burdensome demand, like when your boss taxes your patience with another Monday meeting.

💰 Finance / Accounting

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