Stockholders' equity is divided into:

Question

Quizplus · Accepted Answer

Stockholders' equity is the residual interest in the assets of the company after deducting liabilities. It is composed of two main parts: retained earnings and paid-in capital. Retained earnings are the accumulated profits of the company that have not been distributed to shareholders in the form of dividends. Paid-in capital is the amount of money that shareholders have contributed to the company by purchasing shares of stock. The other choices are not accurate as assets and liabilities are part of the balance sheet but not of stockholders' equity, and preferred stock is a type of stock but not the whole of stockholders' equity.

Stockholders' Equity Is Divided Into