Question

Stockholders' equity is generally classified into two major categories:

Answer 1

Answer:

d. earned capital and contributed capital.

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

The contributed capital comprises of common stock and the preferred stock whereas the earned capital includes retained earnings