The Two Main Components of Stockholders' Equity Are

question 52

Multiple Choice

The two main components of stockholders' equity are:

• A)retained earnings and paid-in capital.
• B)assets and liabilities.
• C)paid-in capital and assets.
• D)net income and retained earnings.

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Definitions:

RRSP

Registered Retirement Savings Plan, a Canadian investment account for holding savings and investment assets, with certain tax benefits.

Compounded Monthly

A method that involves computing interest for a month by adding it to both the original principal sum and the interest that has been accumulated from past periods.

Conditional Sale Contract

A sales agreement that transfers the title of an item to the buyer only after certain conditions, typically payment completion, are met.

Compounded Monthly

Interest calculation method where interest is added to the principal every month, affecting subsequent interest calculations.