The stockholders' equity section is usually divided into what three parts?
A) Preferred stock, common stock, treasury stock
B) Preferred stock, common stock, retained earnings
C) Capital stock, additional paid-in capital, retained earnings
D) Capital stock, appropriated retained earnings, unappropriated retained earnings

Question

Quizplus · Accepted Answer

The stockholders' equity section is usually divided into three parts: capital stock, additional paid-in capital, and retained earnings. Capital stock refers to the par value of the shares issued, while additional paid-in capital represents amounts received from investors in excess of the par value. Retained earnings are the accumulated profits of the company that have not been distributed as dividends.

The Stockholders' Equity Section Is Usually Divided into What Three