Which of the Following Balance Sheet Accounts Describes the Stockholders

question 47

Multiple Choice

Which of the following balance sheet accounts describes the stockholders' claims on the assets of a firm that have been created by the company's operating profits?

• A)Retained Earnings
• B)Net Income
• C)Contributed Capital
• D)Paid-in-Capital in Excess of Par

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Definitions:

Income Earned

The compensation received by individuals for their participation in productive activities, typically through wages, salaries, or profits.

Henry George

A 19th-century economist known for his ideas on taxation, particularly the proposal that a single tax on land value could replace all other taxes, thereby improving economic equality and efficiency.

Rent

A regular payment made by a tenant to a landlord for the use of land, a building, or other property.

Landlords

Property owners who rent out land, residential, or commercial properties to tenants.