Skip to main content
Oct 16, 2018 12:15 AM UTC
Solved

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

Original commenter did not share additional details
vpcontroller
Oct 16, 2018 12:15 AM UTC

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
Oct 16, 2018 12:15 AM UTC

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.