Which stockholders' equity account represents the sum of every dollar a company has earned since its inception, less any payments made to shareholders in the form of dividends?
A)Treasury stock.
B)Accumulated other comprehensive income
C)Retained earnings.
D)Preferred stock.

Question

Quizplus · Accepted Answer

Retained earnings represent the sum of every dollar a company has earned since its inception, less any payments made to shareholders in the form of dividends. Treasury stock represents the company's own stock that has been repurchased and is held in the company's treasury. Accumulated other comprehensive income represents unrealized gains or losses on certain investments or hedges. Preferred stock is a separate class of stock that has specific rights and preferences over common stockholders, but it does not represent the sum of earnings retained by the company.

Which Stockholders' Equity Account Represents the Sum of Every Dollar