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Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068The owners’ equity section of a balance sheet contains two major components:
a. Common Stock and Additional Paid-in Capital.
b. Paid-in Capital and Retained Earnings.
c. Common Stock and Retained Earnings.
d. Net Income and Dividends.
e. Additional Paid-in Capital and Net Income.
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Balance Sheet
It can be defined as a statement that provides the summary of the Assets, Liabilities and the Owner’s equity in an organization on a particular date. It contains all the closing balances of all the accounts that will be represented on the assets and liabilities side.
Shareholder’s Equity
Shareholder’s Equity is also known by the name of Owner’s Equity. It is also one of the parts of Balance sheet other than assets and liabilities. It is the Capital contributed by the owner of his business.
The owner has right over his assets and he is liable for all his dues. Capital contributed and retained earnings are the two types of owner’s equity.
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