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Which of the following accounts is a stockholders' equity account?

Question

Which of the following accounts is a stockholders' equity account?

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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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