Question

The paid-in capital portion of stockholders' equity does not include:

a) Common stock
b) Retained earnings
c) Preferred stock
d) Additional paid-in capital

Answer 1

The paid-in capital portion of stockholders' equity does not include retained earnings.

Step-by-step explanation:

The paid-in capital portion of stockholders' equity does not include Retained earnings. The paid-in capital represents the amount of money that stockholders have invested in the company through the purchase of common stock, preferred stock, and additional paid-in capital. Retained earnings, on the other hand, represent the accumulated profits of the company that have not been distributed as dividends.