Answer :
The increase in owners' equity for a given period is equal to the net income minus dividends.
Net income represents the amount of revenue a company generates during a specific period minus its expenses and taxes. It is an important indicator of a company's profitability. Dividends, on the other hand, are distributions of a company's earnings to its shareholders. They are typically paid out in cash or additional shares of stock. Owners' equity, also known as shareholders' equity or net worth, is the residual interest in the assets of a company after deducting its liabilities.
It represents the owners' claims on the company's assets and is a measure of the company's overall value. The increase in owners' equity is calculated by subtracting dividends from the net income. This reflects the portion of the company's earnings that is retained within the business and contributes to the growth of owners' equity.
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