The stockholders' equity section of a balance sheet contains two major components:
a. Common Stock and Additional Paid-in Capital
b. Paid-in Capital and Retained Earnings
c. Common Stock and Retained Earnings
d. Net Income and Dividends
e. Additional Paid-in Capital and Net Income

Respuesta :

Answer:

The correct answer is letter "B": Paid-in Capital and Retained Earnings.

Explanation:

Stockholders' Equity represents the equity that shareholders own in a company. Companies calculate it by subtracting the total liabilities from their total assets. The result is listed on the Balance Sheet in the Paid-in Capital and the Retained Earnings. Stockholder's equity is important to investors. This reveals the value of investing in a corporation.