Which of the following best describes contributed capital?
A) The amount of capital provided by stockholders' investments
B) The amount that would be distributed to the stockholders in a liquidation of the corporation
C) The amount of capital provided by stockholders' investments and undistributed earnings
D) The value of the common and preferred stock

Question

Quizplus · Accepted Answer

Contributed capital refers to the amount of capital invested by the stockholders into the company through the issuance of common or preferred stock. It does not include undistributed earnings or the value of the stock, as those are separate components of stockholders' equity. It also does not necessarily reflect the amount that would be distributed in a liquidation, which would depend on factors such as the company's liabilities and remaining assets.

Which of the Following Best Describes Contributed Capital