Distinctions between paid-in capital and retained earnings are rarely made for_____.
A)corporations and partnerships
B)partnerships and sole proprietorships
C)sole proprietorship and corporations
D)corporations

Question

Quizplus · Accepted Answer

Distinctions between paid-in capital and retained earnings are rarely made for partnerships and sole proprietorships because these entities do not issue stock. Paid-in capital is a concept associated with the sale of stock, which is specific to corporations.

Distinctions Between Paid-In Capital and Retained Earnings Are Rarely Made