The two categories of shareholders' equity usually found on the balance sheet of a corporation are
A) contributed capital and property, plant, and equipment.
B) retained earnings and notes payable.
C) common stock and retained earnings.
D) contributed capital and equity securities.

Question

Quizplus · Accepted Answer

The two categories of shareholders' equity usually found on the balance sheet of a corporation are common stock and retained earnings. Common stock represents the amount of money invested by shareholders in exchange for common stock shares, while retained earnings represent the portion of the company's profits that have not been distributed as dividends to shareholders.

The Two Categories of Shareholders' Equity Usually Found on the Balance