The two categories of shareholders' equity usually found on the balance sheet of a corporation are:
A) Contributed capital and property, plant, and equipment.
B) Retained earnings and notes payable.
C) Common stock and retained earnings.
D) Contributed capital and equity securities.

Question

The two categories of shareholders' equity usually found on the balance sheet of a corporation are: 
A) Contributed capital and property, plant, and equipment.
B) Retained earnings and notes payable.
C) Common stock and retained earnings.
D) Contributed capital and equity securities.

Quizplus · Accepted Answer

The two categories of shareholders' equity usually found on the balance sheet of a corporation are common stock and retained earnings. Common stock represents the amount of money that shareholders have invested in the company through the purchase of stock, while retained earnings represent the accumulated profits of the company that have been kept within the business rather than paid out as dividends.

The Two Categories of Shareholders' Equity Usually Found on the Balance