A corporation's stockholders' equity section of the balance sheet may contain all except

Question

Quizplus · Accepted Answer

The name T. McDonald, Capital in option A suggests that it is a specific individual's capital rather than a general term for stockholders' equity. Therefore, it is incorrect as an option in a corporation's balance sheet. The other options commonly appear in the stockholders' equity section of the balance sheet. Common stock represents the par value of the outstanding shares, retained earnings show the accumulated profits that the company has not distributed as dividends, and additional paid-in capital indicates the amount of money the shareholders have contributed to the company above the common stock's par value.

A Corporation's Stockholders' Equity Section of the Balance Sheet May