Why Is Only One Account Maintained For The Investment Of All Owners Of A Corporation?

Owners' Equity Account For Investment Of All Owners
How Many
Accounts Are Kept For The Investment Of All Owners Of A Corporation? / Why A Larger Business Can Not Maintain A Separate Owner’s Equity Account For Each Owner?

A corporation or company maintains only one Equity Account or Capital Stock Account for the investment of all owners of the corporation’s business as in most of the corporations / companies, there are many owners / stockholder or shareholders, so it is very difficult to maintain separate Owner’s Equity Accounts for the investment of all of the owners of the corporations.

This Stockholders’ Equity Account recorded on Balance Sheet shows the rights of the owners of the corporation’s business against the Assets of the business.

Comments