Which of the following is included as a component of stockholders' equity?
A) Buildings
B) Retained earnings
C) Prepaid property taxes
D) Accounts payable
E) Dividends

Question

Quizplus · Accepted Answer

Retained earnings represent the cumulative amount of net income earned by a company that is retained by the company rather than distributed to its shareholders as dividends. This makes it a component of stockholders' equity, reflecting the company's reinvested earnings.

Which of the Following Is Included as a Component of Stockholders