Total stockholders' equity consists of
A) preferred stock and common stock.
B) common stock and retained earnings.
C) common stock, preferred stock, and capital paid in excess of par.
D) preferred stock, common stock, capital paid in excess of par, and retained earnings.

Question

Quizplus · Accepted Answer

Total stockholders' equity consists of preferred stock, common stock, capital paid in excess of par, and retained earnings. Preferred and common stock represent the ownership interest of a company's shareholders, while capital paid in excess of par represents the excess amount paid by shareholders for the stock over the par value. Retained earnings represent the portion of a company's profits that have been retained in the business instead of paid out as dividends. Together, these components make up the total stockholders' equity of a company.

Total Stockholders' Equity Consists of