The two basic sources of stockholders' equity are ________.
A) common stock and bonds
B) common stock and preferred stock
C) paid-in capital and retained earnings
D) no-par and stated value stock

Question

Quizplus · Accepted Answer

The two basic sources of stockholders' equity are paid-in capital and retained earnings. Paid-in capital represents funds contributed by shareholders in exchange for ownership shares, while retained earnings represent profits that the company has kept and reinvested rather than distributing as dividends. Common stock, preferred stock, bonds, no-par stock, and stated value stock are all forms of ownership or debt instruments that may contribute to stockholders' equity, but they are not the two basic sources.

The Two Basic Sources of Stockholders' Equity Are ________