Asked by Caitlin Saalfrank on May 19, 2024
Verified
Stockholders' equity on the balance sheet includes common stock and retained earnings.
Stockholders' Equity
The portion of a company's assets that belongs to the shareholders, calculated as the difference between total assets and liabilities.
Common Stock
A form of corporate equity ownership, a type of security that represents ownership of a portion of a company.
- Gain insight into the framework of the balance sheet and its segments.
- Acquire knowledge on the movements and adjustments within stockholders' equity.
Verified Answer
SZ
samia zafarMay 21, 2024
Final Answer :
True
Explanation :
Stockholders' equity is the residual interest in the assets of the company after deducting liabilities. It consists of common stock, which reflects the initial capital contributed by shareholders, and retained earnings, which represents the accumulation of past profits and losses that have not been distributed as dividends.
Learning Objectives
- Gain insight into the framework of the balance sheet and its segments.
- Acquire knowledge on the movements and adjustments within stockholders' equity.
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