Which of the following are the two components of Shareholders' equity?
A)Dividends and retained earnings
B)Share capital and retained earnings
C)Share capital and net income
D)Net income and dividends

Question

Quizplus · Accepted Answer

Shareholders' equity is composed of two main components: share capital and retained earnings. Share capital represents the amount of money invested by shareholders in exchange for shares of stock, while retained earnings represent the cumulative profits of a company that have not been distributed as dividends. Therefore, option B (share capital and retained earnings) is the correct choice.

Which of the Following Are the Two Components of Shareholders