Stockholders' equity consists of which of the following?

Question

Quizplus · Accepted Answer

Stockholders' equity represents the residual interest of shareholders in a company, which is composed of paid-in capital (contributed by shareholders) and retained earnings (the company's accumulated profits). Long-term assets (A) and premiums/discounts (C) are not part of stockholders' equity. While paid-in capital may include par value (D) for some companies, it is not the only component of stockholders' equity. Cash (E) is an asset, not a component of stockholders' equity.

Stockholders' Equity Consists of Which of the Following