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October 16, 2018
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What is the members equity and how is it different from net income?

  • October 16, 2018
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Best answer by vpcontroller

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.

1 reply

vpcontroller
October 16, 2018

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.