The two categories of stockholders' equity usually found in the balance sheet of a corporation are:
A)Common stock and liabilities.
B)Assets and liabilities.
C)Common stock and retained earnings.
D)Revenues and expenses.

Question

Quizplus · Accepted Answer

The two categories of stockholders' equity that are usually found in the balance sheet of a corporation are common stock and retained earnings. Common stock represents the amount of money invested by shareholders in exchange for shares of ownership in the company. Retained earnings, on the other hand, represent the portion of the company's profits that are not paid out as dividends to shareholders but are instead reinvested in the business. Therefore, choice C is the best answer.

The Two Categories of Stockholders' Equity Usually Found in the Balance