Shareholders' equity is usually comprised of
A)common shares and dividends declared.
B)common shares and retained earnings.
C)dividends declared and retained earnings.
D)net income and retained earnings.

Question

Quizplus · Accepted Answer

Shareholders' equity typically consists of common shares and retained earnings. Common shares represent the equity capital contributed by shareholders, while retained earnings are the accumulated profits that have been reinvested in the business rather than distributed to shareholders as dividends.

Shareholders' Equity Is Usually Comprised of