The two primary sources of equity shown in a balance sheet are:
A)Residual equity and debt equity.
B)Capital equity and residual equity.
C)Contributed capital and earned capital.
D)Unearned capital and earned capital.

Question

Quizplus · Accepted Answer

The two primary sources of equity shown in a balance sheet are contributed capital (such as common stock) and earned capital (such as retained earnings). Residual equity and debt equity are not commonly used terms in accounting, while capital equity and unearned capital are not primary sources of equity.

The Two Primary Sources of Equity Shown in a Balance