asked 140k views
1 vote
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

asked
User Charlyn
by
8.0k points

1 Answer

5 votes

Answer:

C. includes retained earnings and paid-in capital

Step-by-step 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.

answered
User Talha Noyon
by
8.2k points
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