Which of the following is the correct order of accounts in the stockholders' equity section of the balance sheet? (Assume preferred stock is issued at par.)
A) Common stock, Preferred stock, Paid-in capital in excess of par, Retained earnings.
B) Common stock, Paid-in capital in excess of par, Preferred stock, Retained earnings
C) Preferred stock, Paid-in capital in excess of par, Common stock, Retained earnings
D) Preferred stock, Common stock, Paid-in capital in excess of par, Retained earnings

Question

Quizplus · Accepted Answer

The correct order for presenting stockholders' equity accounts on the balance sheet is: Preferred stock, Common stock, Paid-in capital in excess of par, and Retained earnings. This order reflects the hierarchy and preference in equity structure, starting with preferred stock due to its priority over common stock in dividends and liquidation.

Which of the Following Is the Correct Order of Accounts