BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
1 views

What are the two most common components of shareholders’ equity? How do they differ?

To determine

State the most common components of shareholders’ equity and explain the way in which they differ.

Explanation

Shareholders’ equity:

The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Therefore, stockholders’ equity is sometimes referred to as “net worth of owners or shareholders or stockholders”.

The two components of shareholders’ equity are as follows;

  1. “contributed capital”
  2. “Earned capital”

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Identify and briefly compare the two leading stock exchanges in the United States today.

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What are equivalent units? Why are they needed in a process-costing system?

Cornerstones of Cost Management (Cornerstones Series)