The funds provided by common stockholders that consist of common stock, paid-in capital, and retained earnings are referred to as the firm's:
A)net worth.
B)net cash flows.
C)cash equivalents.
D)accruals.
E)market value.

Question

Quizplus · Accepted Answer

The funds provided by common stockholders consist of common stock (the amount paid by shareholders to purchase shares), paid-in capital (the amount received by the company in excess of the par value of the shares), and retained earnings (the portion of the company's profits that are kept within the company and not paid out as dividends). This total amount is referred to as the firm's net worth or shareholders' equity.

The Funds Provided by Common Stockholders That Consist of Common