What are the two categories of shareholders' equity usually found on the statement of financial position of a corporation?

Question

Quizplus · Accepted Answer

The two categories of shareholders' equity usually found on the statement of financial position of a corporation are contributed capital and retained earnings. Contributed capital represents the amount of capital contributed by shareholders to the corporation through the issuance of shares, while retained earnings are the accumulated profits of the corporation that have not been distributed to shareholders as dividends. Therefore, option C is the correct answer. Option A is incorrect because notes payable is a liability and not a component of equity. Option B is incorrect because property, plant, and equipment is an asset, while equity represents ownership in the corporation. Option D is incorrect because long-term liabilities are liabilities and not part of equity.

What Are the Two Categories of Shareholders' Equity Usually Found