Question

Stockholders’ equity consists of which of the following? Multiple Choice Long-term assets. Paid-in (or contributed) capital and retained earnings. Paid-in (or contributed) capital and par value. Retained earnings and cash. Premiums and discounts.

Answer 1

Stockholders’ equity consists of B. Paid-in (or contributed) capital and retained earnings.

What is stockholders' equity?

The stockholders' equity can be computed as the addition of Paid-up capital, Additional Paid-in Capital, Retained Earnings, and minus Treasury Stock.

Alternatively, it can be computed as the difference between total assets and total liabilities.

Thus, Stockholders’ equity consists of B. Paid-in (or contributed) capital and retained earnings.

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