Stockholders' Equity Consists Of

question 115

Multiple Choice

Stockholders' equity consists of:

• A)Long-term assets.
• B)Contributed capital and retained earnings.
• C)Contributed capital and par value.
• D)Retained earnings and cash.
• E)Premiums and discounts.

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Definitions:

Posted Correctly

The action of accurately recording transactions in the appropriate accounts in an accounting system.

Ledger

A book or digital record in which a company maintains its accounts, tracking all financial transactions systematically.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or entity, providing key information on its financial health.

Post. Ref. Column

Short for Posting Reference Column, it's used in journal entries to indicate where data is transferred in the ledger.