Which of the following are the components of stockholders' equity on the balance sheet?
Posted: Sat Aug 07, 2021 6:46 am
A) Common stock and liabilities.
B) Common stock and assets.
C) Retained earnings and dividends.
D) Common stock and retained earnings.
Answer: D
Explanation: Stockholders' equity represents investments by owners (common stock) and the
amount of earnings reinvested in the business (retained earnings).
B) Common stock and assets.
C) Retained earnings and dividends.
D) Common stock and retained earnings.
Answer: D
Explanation: Stockholders' equity represents investments by owners (common stock) and the
amount of earnings reinvested in the business (retained earnings).