Which of the best describes shareholders equity

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Stockholders' equity

Problem 1: Which of the following best describes shareholders' equity? The right side of the balance sheet shows the firm's liabilities and stockholders' equity.

a. Equity is the sum of what the initial stockholders paid when they bought company shares and the earnings that the company has retained over the years.

b. Equity is the difference between the paid-in capital and retained earnings.

Reference no: EM132976698

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