The two main sources of stockholders' equity are
A) investments by stockholders and net income retained in the business
B) investments by stockholders and dividends paid
C) net income retained in the business and dividends paid
D) investments by stockholders and purchases of assets

Question

Quizplus · Accepted Answer

The two main sources of stockholders' equity are investments by stockholders (such as purchases of stock) and net income retained in the business (which increases retained earnings). Dividends paid, the purchase of assets, and other factors may affect stockholders' equity, but they are not the primary sources.

The Two Main Sources of Stockholders' Equity Are