Shareholders' equity is:
A)the amount the company received for all shares when issued plus the amount of retained earnings and the amount of contributed surplus minus treasury shares.
B)the amount the company received for all shares authorized plus the amount of retained earnings and treasury shares.
C)the par value the company received for all shares issued plus the amount of retained earnings and contributed surplus minus treasury shares.
D)the amount the company received for all shares when issued minus the amount of retained earnings and treasury shares.

Question

Quizplus · Accepted Answer

Shareholders' equity is the residual interest in the assets of the company after deducting liabilities. It includes the amount received for all shares when issued, the amount of retained earnings and the amount of contributed surplus, and subtracts treasury shares. Choice A correctly includes all of these components.

Shareholders' Equity Is