Shareholders' equity, in a corporation, at the end of the period is equal to
A) shareholders' equity at the beginning of the period plus profit minus liabilities.
B) share capital plus retained earnings.
C) share capital plus dividends.
D) share capital plus this year's profit.

Question

Quizplus · Accepted Answer

Shareholders' equity is calculated as share capital plus retained earnings. Retained earnings include profits that have not been distributed to shareholders as dividends.

Shareholders' Equity, in a Corporation, at the End of the Period