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Grace [21]
3 years ago
15

Total stockholders' equity represents :

Business
1 answer:
Ganezh [65]3 years ago
5 0

Answer:

c. a claim against a portion of the total assets of an enterprise.

Explanation:

The statement of stockholder's equity comprises common stock, preferred stock, and retained earnings.  

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

And, the ending balance of the common stock = Beginning balance of common stock + issued shares  

In this the accounting equation is used which is shown below:  

Total assets = Total liabilities + stockholder equity  

The debit and credit side of the balance sheet should always be equal and balanced. So, its claims against the portion of the total assets

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