Question

Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock. True or false?

Answer 1

Answer:

false

Explanation:

Paid-in capital is the amount of money or any other form that stockholders pay to the corporation for capital stock. it is considered as an important part of the equity in the business. paid-in capital can be paid for common or preferred stock.

it is considered a way through which stockholders can represent their funds by showing the amount of stock they have purchased