Retained earnings are not part of the stockholders' claims on the company's net assets.

Name: Retained earnings are not part of the stockholders' claims on the company's net assets.
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Question

Quizplus · Accepted Answer

Retained earnings are part of the company's equity, which represents the residual interest in the assets of the company after deducting all liabilities. Stockholders' claims on the company's net assets are represented by the par value of the stock plus any additional paid-in capital.

Retained Earnings Are Not Part of the Stockholders' Claims on the Company's