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What is the members equity and how is it different from net income?

 
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Best answer 10-15-2018

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Level 10

What is the members equity and how is it different from net income?

Normally, Member's Equity refers to initial as wells as additional money put in by the members to run the business. Wheras the net income (revenue minus expenses) refers to profit generated from operations of business which gets added back to equity (or distributed) as a separate line on the Balance Sheet.

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Highlighted
Level 10

What is the members equity and how is it different from net income?

Normally, Member's Equity refers to initial as wells as additional money put in by the members to run the business. Wheras the net income (revenue minus expenses) refers to profit generated from operations of business which gets added back to equity (or distributed) as a separate line on the Balance Sheet.

View solution in original post

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