What are the two categories of owners' equity?
A) short-term and long-term
B) stocks and bonds
C) paid-in capital and retained earnings
D) common stock and preferred stock

Question

Quizplus · Accepted Answer

The two categories of owners' equity are paid-in capital and retained earnings. Paid-in capital represents the amount of capital that investors have contributed to the company through the sale of stock, while retained earnings represent the profits that the company has earned and kept over time. Therefore, option C is the correct answer. Options A, B, and D are not relevant to the two categories of owners' equity.

What Are the Two Categories of Owners' Equity