Which of the following is not a component of contributed capital?
A) Preferred stock
B) Treasury stock
C) Earned capital
D) Additional paid-in capital

Question

Quizplus · Accepted Answer

Contributed capital refers to the capital that is contributed to a corporation by its shareholders through the purchase of stock directly from the company, including preferred stock and additional paid-in capital. Treasury stock represents the shares that a company has repurchased from its shareholders and does not represent contributed capital. Earned capital, on the other hand, is generated from the company's operations and profits, not from contributions by shareholders, making it the correct answer.

Which of the Following Is Not a Component of Contributed