Which of the following accounts is a stockholders' equity account?
Question
Which of the following accounts is a stockholders' equity account?
Solution
To determine which account is a stockholders' equity account, let's break down the options typically associated with stockholders' equity:
Step 1: Define the Problem
Identify the account types that fall under stockholders' equity.
Step 2: Break Down the Problem
Stockholders' equity generally includes:
- Common Stock
- Preferred Stock
- Retained Earnings
- Additional Paid-In Capital
- Treasury Stock (contra equity account)
Step 3: Apply Relevant Concepts
Stockholders' equity represents the owners' claim after all liabilities have been settled. It is a section of the balance sheet that includes the above accounts.
Step 4: Analysis, Verify and Summarize
Review the options provided in the question to identify which one matches the typical stockholders' equity accounts listed above.
Final Answer
The account that is a stockholders' equity account is likely to be one of the following: Common Stock, Preferred Stock, Retained Earnings, Additional Paid-In Capital, or Treasury Stock.
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