Which of the accounts listed below is not a subdivision of retained earnings?

Question

Quizplus · Accepted Answer

Retained earnings are a subsection of stockholder's equity that represents the cumulative earnings kept by the company and not distributed as dividends. Common stock, on the other hand, represents the equity capital paid into the company by its owners when they purchase shares of stock. Therefore, common stock is not a subdivision of retained earnings but a separate category within stockholder's equity. The other options listed, such as dividends, revenues, and expenses, all affect retained earnings and are subdivisions of that category.

Which of the Accounts Listed Below Is Not a Subdivision