What distinguishes the two most commonly used categories of owners' equity?
A) the amount of equity within each type of asset-current versus fixed and intangible
B) the financial form of the equity-cash investments versus stock and bond investments
C) the source of the equity-investments versus earnings
D) the use of the equity-invested versus saved
E) the age of the equity-older investments and earnings versus newer investments and earnings

Question

Quizplus · Accepted Answer

C)Paid-in capital is additional money invested by owners; retained earnings are net profits kept by a firm rather than paid out as dividend payments to stockholders.

What Distinguishes the Two Most Commonly Used Categories of Owners