The Two Categories of Shareholders' Equity Usually Found on the Balance

question 32

Multiple Choice

The two categories of shareholders' equity usually found on the balance sheet of a corporation are

• A) contributed capital and property, plant, and equipment.
• B) retained earnings and notes payable.
• C) common stock and retained earnings.
• D) contributed capital and equity securities.

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Definitions:

Demand Curve

Illustrates the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at each price level.

Total Costs

The combined total of fixed and variable costs involved in the manufacturing of goods or services.

Daily Profit

The financial gain a business makes in a single day, calculated by subtracting total expenses from total revenue for that day.

Marginal Costs

The advance in complete cost due to the manufacturing of one additional unit of a good or service.