Question

Stockholders' equity:________A. Is equal to assets minus liabilities B. Represents the interest of the owners in the assets of an entity C. Is equal to the net assets of an entity D. All of the above E. None of the above

Answer 1

Answer:

D. All of the above

Explanation:

Stockholder equity is also known as shareholders' equity.  The shareholder's equity is composed of their capital contribution plus the retained earnings.  In the balance sheet, the value of shareholder equity equals assets minus liabilities.

Stockholder equity is the amount that shareholders will receive if the assets of a company are to be liquidated after liabilities have been settled. It is the shareholder interest in the company.