Money: How Retained Earnings and Unresolved Equity are Calculated (222674)


The information in this article applies to:

  • Microsoft Money 2004 Small Business
  • Microsoft Money 2001 Deluxe and Business
  • Microsoft Money 2000 Business and Personal
  • Microsoft Money 99 Business and Personal
  • Microsoft Money Deluxe & Business 2002
This article was previously published under Q222674

SUMMARY

This article describes how unresolved equity and retained earnings are calculated in Microsoft Money.

MORE INFORMATION

  • Retained Earnings. Retained Earnings is the sum of Net Income for the years that you select in the report date range.

    When you open the Profit and Loss Statement in the Business report section with the All to Date date range, the Net Income figure for those years is equal to this year's Retained Earnings figure that is displayed on the Balance Sheet.
  • Unresolved Equity. Unresolved Equity is the difference between Total Assets and Total Liabilities on the Balance Sheet. Total Assets is always equal to Total Liabilities plus Equity.

    Because Money is not a double-entry accounting program, it does not automatically record both sides of a transaction. The Unresolved Equity figure allows the Balance Sheet to stay balanced even if you do not record the second part of a transaction.

    For example, if you take out a loan of $5000, the Liabilities section is increased by $5000, but the Cash account is not automatically increased by $5000. If you do not record the cash side of this transaction, the Unresolved Equity in this scenario is a negative value of $5000 in order to balance the Balance Sheet.
Modification Type:MajorLast Reviewed:9/11/2003
Keywords:kbinfo KB222674
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