Typically,the book value of shareholders' equity equals:
A)total assets minus current liabilities.
B)total assets minus net worth.
C)the sum of preferred stock,debt,and the par value of equity.
D)the sum of the par value of common stock,additional paid-in capital,and accumulated retained earnings.

Question

Quizplus · Accepted Answer

The book value of shareholders' equity is calculated by adding the par value of common stock, additional paid-in capital, and accumulated retained earnings. This is the amount of capital that has been invested by the shareholders in the company and has not been distributed as dividends or used to purchase treasury stock. Therefore, choice D is the correct answer.

Typically,the Book Value of Shareholders' Equity Equals