Owner's equity consists of ________.
A) common equity
B) preferred equity
C) retained earnings
D) All of the above.

Question

Quizplus · Accepted Answer

Owner's equity includes all of the options listed - common equity, preferred equity, and retained earnings. Common equity represents the ownership interest in the company held by shareholders through the purchase of common stock. Preferred equity is similar to common equity but grants specific preferences such as a fixed dividend rate. Retained earnings are the portion of a company's earnings that are not paid out as dividends but rather are reinvested in the company. Together, these components make up a company's owner's equity.

Owner's Equity Consists of ________