For a corporation,the excess of assets over liabilities are called ________.
A) retained earnings
B) paid-in capital
C) common stock
D) stockholders' equity

Question

Quizplus · Accepted Answer

The excess of assets over liabilities is called stockholders' equity. This represents the ownership portion of a corporation and includes both retained earnings (profits that have been reinvested back into the company) and paid-in capital (money received from selling stock to shareholders). Common stock is a component of paid-in capital and represents ownership shares held by shareholders. Therefore, while options A, B, and C are all related to stockholders' equity, only D accurately represents the excess of assets over liabilities.

For a Corporation,the Excess of Assets Over Liabilities Are Called