Sweat Equity Accounting Treatment Sweat Equity Example Suppose an entrepreneur starts his company with an initial capital of USD 10,000. He works in the business for 5 years and eventually sold it off for USD 1,
Sweat equity refers to a contribution to equity or assets created by people are part of a project that resulted directly from their hard work. The contributions must specifically take time and effort and do not include financial contributions. In a start-up company, an example of sweat equity ...