The shareholders' equity as shown on a corporate balance sheet belongs to the:

Question

Quizplus · Accepted Answer

Shareholders' equity belongs to the common shareholders, who are the owners of the company and have a residual claim on the assets and earnings after all other obligations are paid. Preferred shareholders may have a separate equity account, and creditors have no ownership in the company, so they do not have any claim to the shareholders' equity.

The Shareholders' Equity as Shown on a Corporate Balance Sheet