Owners' equity consists of two sources: the amount that the owners originally invested, and profits earned by and reinvested in the company.

Question

Quizplus · Accepted Answer

This statement correctly describes the two sources of owners' equity. The first source is the initial investment made by the owners, while the second source is the profits that the company has earned and reinvested back into the business.

Owners' Equity Consists of Two Sources: the Amount That the Owners