Which of the following line item amounts would be under the Retained Earnings column of a statement of stockholders' equity?
A) Net Income
B) Stock Issuances
C) Additional Paid-in Capital
D) Treasury Stock

Question

Quizplus · Accepted Answer

Retained earnings represent the cumulative profits or losses of a company that have not been distributed as dividends, so net income (profits) would be included in the Retained Earnings column. Stock issuances and additional paid-in capital would be recorded under the Common Stock and Additional Paid-in Capital columns, respectively. Treasury stock represents shares of a company's own stock that have been bought back and would be recorded as a reduction of stockholders' equity rather than a part of it.

Which of the Following Line Item Amounts Would Be Under