The major components of stockholders' equity are:
A)Cash,common stock and paid-in surplus
B)Common stock,paid-in surplus and net income
C)Common stock,paid-in surplus and retained earnings
D)Common stock,liabilities and retained earnings

Question

Quizplus · Accepted Answer

The major components of stockholders' equity are common stock, paid-in surplus, and retained earnings. Common stock is the amount of money that shareholders have invested in the company by purchasing shares. Paid-in surplus is the amount of money that shareholders have paid for their shares above the par value. Retained earnings are the accumulated profits that the company has earned and not paid out as dividends. Therefore, the correct option is C.

The Major Components of Stockholders' Equity Are