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5 July, 14:25

Stockholders' equity

A. is usually equal to cash on hand

B. includes paid-in capital and liabilities

C. includes retained earnings and paid-in capital

D. is shown on the income statement

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Answers (1)
  1. 5 July, 14:35
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    C. includes retained earnings and paid-in capital

    Explanation:

    The statement of stockholder's equity comprises common stock i. e paid-in capital and retained earnings.

    The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

    And, the ending balance of the common stock = Beginning balance of common stock + issued shares

    In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:

    Total assets = Total liabilities + stockholder equity

    The debit and credit side of the balance sheet should always be equal and balanced.

    Moreover, it always is prepared on the specified date.
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