Answered: Stockholders' equity is: Multiple…

Stockholders' equity is: Multiple Choice a liability of the business. an economic resource controlled by the business. the owners' claims on the business. the profit generated by the business.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Stockholders' equity is:

Multiple Choice

a liability of the business.
an economic resource controlled by the business.
the owners' claims on the business.
the profit generated by the business.

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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