Which of the following accounts are included in shareholders' equity?
I.Interest paid.
II.Retained earnings.
III.Capital surplus.
IV.Non-current liabilities.
A)I and II only.
B)II and IV only.
C)I and IV only.
D)II and III only.
E)I and III only.

Question

Which of the following accounts are included in shareholders' equity? 
I.Interest paid.
II.Retained earnings.
III.Capital surplus.
IV.Non-current liabilities.
A)I and II only.
B)II and IV only.
C)I and IV only.
D)II and III only.
E)I and III only.

Quizplus · Accepted Answer

Retained earnings and capital surplus are both components of shareholders' equity. Retained earnings represent the accumulated net income that has not been distributed to shareholders as dividends, while capital surplus refers to the excess amount received from shareholders over the par value of the shares issued. Interest paid and non-current liabilities are not part of shareholders' equity; interest paid is an expense, and non-current liabilities represent long-term financial obligations.

Which of the Following Accounts Are Included in Shareholders' Equity