Contributed capital is the residual interest that remains after deducting liabilities from shareholders' equity.

Question

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Contributed capital refers to the capital that shareholders have directly invested in the company through purchasing shares from the company, not the residual interest after deducting liabilities. The residual interest after deducting liabilities from assets is known as retained earnings or shareholders' equity.

Contributed Capital Is the Residual Interest That Remains After Deducting