The book value of the shareholders' ownership is represented by:
A)the sum of the par value of common stock, the capital surplus and the accumulated
Retained earnings.
B)the total assets minus the net worth.
C)the sum of the preference shares, debt and the capital surplus.
D)the sum of the total assets minus the current liabilities.
E)None of the above.

Question

Quizplus · Accepted Answer

The book value of the shareholders' ownership is the total equity of the company, which is calculated by adding the par value of common stock, capital surplus, and accumulated retained earnings. This represents the total amount of money that would be distributed to shareholders if the company were to be liquidated.

The Book Value of the Shareholders' Ownership Is Represented By