Generally, the book value of the shareholders' equity is represented by:
A) The total assets minus the current liabilities
B) The total assets minus the net worth
C) The sum of preferred stock, debt and the capital surplus
D) The sum of the par value of common stock, the capital surplus and the accumulated retained earnings

Question

Quizplus · Accepted Answer

The book value of shareholders' equity is the sum of the par value of common stock, the capital surplus and the accumulated retained earnings. Preferred stock and debt are not included in the shareholders' equity, and subtracting either the current liabilities or net worth from total assets would not provide an accurate representation of shareholder equity.

Generally, the Book Value of the Shareholders' Equity Is Represented