Which of the Following Is NOT a Source of Equity

question 3

Multiple Choice

Which of the following is NOT a source of equity on a firm's balance sheet?

• A) additional paid-in capital
• B) retained earnings
• C) common stock
• D) property,plant,and equipment

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Definitions:

Net Income

The earnings a company retains following the deduction of all costs and taxes from its revenue.

Rent Expense

The cost incurred by a business to use property or equipment for business purposes.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and net income.

Balance Sheet

A record that presents a summary of a business's assets, liabilities, and shareholders' equity at a given time.