Question

Which of the following is included as a component of stockholders’ equity? a. Accounts payable b. Buildings Retained earnings c. Prepaid property taxes d. Accumulated depreciation

Answer 1

Answer:

b. Buildings Retained earnings

Explanation:

Retained earning is the component of the stockholder's equity. It is the earning which is accumulated but not been distributed to the stockholder's after paying all the expense interest and taxes. this amount is is only attributed to stockholder's they decide to withdraw or reinvest in the business. Account payable, prepaid taxes and accumulated depreciation are actually liability, asset and contra-asset account.