Shareholders' Equity

question 133

Multiple Choice

Shareholders' equity:

• A) Includes common stock, paid in surplus, retained earnings, and long-term debt.
• B) On a statement of financial position is equivalent to the market value of the outstanding shares of stock.
• C) Includes all of a firm's earnings retained by the firm to date.
• D) Increases, all else equal, when the dividends paid are greater than the net income for a year.
• E) Includes the book value of any bonds issued by the firm.

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