The ownership claim arising from funds contributed by the owners of the business is called ________.
A) liabilities
B) retained earnings
C) note payable
D) paid-in capital

Question

Quizplus · Accepted Answer

Paid-in capital refers to the ownership claim arising from funds contributed by the owners of the business, such as through the issuance of common stock. Liabilities refer to obligations the business owes to others, such as loans or accounts payable. Retained earnings are the profits the business has earned but not distributed to owners or shareholders. Note payable is a type of liability that represents a written promise to pay a certain amount at a certain date with interest.

The Ownership Claim Arising from Funds Contributed by the Owners