In corporate accounting, a distinction is made between paid-in or invested capital and capital resulting from retained earnings.

Question

Quizplus · Accepted Answer

In corporate accounting, paid-in or invested capital refers to the capital contributed by shareholders in exchange for ownership of the company's stock, while capital resulting from retained earnings refers to the portion of the company's profits that have been kept in the business instead of being paid out as dividends to shareholders.

In Corporate Accounting, a Distinction Is Made Between Paid-In or Invested