Which of the following best describes contributed capital?
A) The amount that would be distributed to the stockholders in a liquidation of the corporation
B) The amount of capital provided by stockholders' investments
C) The amount of capital provided by stockholders' investments and undistributed earnings
D) The value of the common and preferred stock

Question

Quizplus · Accepted Answer

Contributed capital represents the amount of capital provided by stockholders' investments, including the proceeds from issuing common and preferred stock. Contributed capital does not include undistributed earnings or the amount that would be distributed to stockholders in a liquidation.

Which of the Following Best Describes Contributed Capital