________ Is a Major Component/section of Stockholders' Equity on the Balance

question 25

Multiple Choice

________ is a major component/section of stockholders' equity on the balance sheet.

• A) Common stock
• B) Preferred stock
• C) Contributed capital
• D) Retained earnings

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Definitions:

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which are expected to be settled in the future through the transfer of assets, provision of services, or other economic benefits.

Owner's Equity

The residual interest in the assets of the enterprise after deducting liabilities, representing the capital owned by the proprietors.

Asset

An economic resource owned or controlled by a person or company, expected to provide future benefits.

Liability

A financial obligation or debt that an entity owes to another that must be paid in the future, such as loans, accounts payable, or mortgages.