Asked by
venxel bantilan
on Nov 15, 2024
Verified
Shareholder's equity consists of at least two parts: share capital and retained earnings.
Shareholder's Equity
The residual interest in the assets of a corporation after deducting its liabilities, often referred to as stockholder's equity or owner's equity.
Share Capital
The funds raised by a company through the sale of its shares, representing the equity stake of its shareholders.
Retained Earnings
The portion of a company's profits that is kept or retained rather than paid out as dividends to shareholders, often used for reinvestment.
- Acquire a solid understanding of the roles and implications of assets, liabilities, and shareholders' equity in accounting practices.
Verified Answer
MK
Learning Objectives
- Acquire a solid understanding of the roles and implications of assets, liabilities, and shareholders' equity in accounting practices.