Paid-in capital and retained earnings are the two major categories of stockholders' equity for a corporation.

Question

Quizplus · Accepted Answer

Paid-in capital represents the amount of capital contributed by the stockholders in exchange for their stock, while retained earnings represent the portion of earnings that have been kept by the corporation rather than distributed as dividends to stockholders. Together, these two categories make up a corporation's stockholders' equity.

Paid-In Capital and Retained Earnings Are the Two Major Categories