Shareholders' equity
A) is equal to liabilities and retained earnings.
B) includes retained earnings and contributed capital.
C) is shown on the income statement.
D) is usually equal to cash on hand.

Question

Quizplus · Accepted Answer

Shareholders' equity consists of retained earnings and contributed capital, reflecting the total value that shareholders own in a company. It is not equal to liabilities and retained earnings (A), is not shown on the income statement but on the balance sheet (C), and is not usually equal to cash on hand (D).

Shareholders' Equity