Shareholders' equity is made up of which two components?
A) Share capital and expenses
B) Expenses and revenues
C) Share capital and retained earnings
D) Expenses and retained earnings

Question

Quizplus · Accepted Answer

Shareholders' equity is composed of two main components: share capital and retained earnings. Share capital represents the amount invested by shareholders in the company in exchange for ownership interest, while retained earnings represent the accumulated profits earned by the company that have not been distributed to shareholders as dividends. Expenses and revenues are components of the income statement, not the shareholders' equity section of the balance sheet.

Shareholders' Equity Is Made Up of Which Two Components