Common equity refers to the sum of which of the following balance sheet accounts?
A) Common stock and retained earnings
B) Book value,retained earnings,and common stock
C) Common stock,additional paid-in capital,retained earnings
D) Either answer a or c above could be correct depending on whether the firm has "par" or "no par" stock.
E) Both b and c are correct since additional paid-in capital is equivalent to book value.

Question

Quizplus · Accepted Answer

Common equity typically includes common stock, additional paid-in capital, and retained earnings. The inclusion of additional paid-in capital depends on whether the firm has "par" or "no par" stock, making both A and C correct in different contexts.

Common Equity Refers to the Sum of Which of the Following