Which of the Following Entries Would Be Found on a Statement

question 45

Multiple Choice

Which of the following entries would be found on a statement of stockholders' equity?

• A)Net loss is subtracted from contributed capital.
• B)Shares of stock issued are added to retained earnings.
• C)Dividends are subtracted from contributed capital.
• D)Repurchased shares are subtracted from contributed capital.

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Definitions:

Initial Investment

The initial amount of money spent to start a project, investment, or business, often including costs such as purchasing equipment, property, or technology.

Internal Rate of Return

The discount rate at which the net present value of all the cash flows from an investment or project equals zero, used as a gauge for its profitability.

Working Capital

The amount of current assets minus current liabilities, indicating the liquidity of a business.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.