All of the following are components of stockholders’ equity, except ____________.Multiple Choicenotes payablepaid-in-capitalretained earningstreasury stock
Question
All of the following are components of stockholders’ equity, except ____________.
- notes payable
- paid-in-capital
- retained earnings
- treasury stock
Solution
To determine which of the options is not a component of stockholders' equity, let's analyze each one:
-
Notes Payable: This represents liabilities, not equity. Hence, it does not belong to stockholders' equity.
-
Paid-in Capital: This is a component of stockholders' equity, representing the amount that investors have paid for shares above the par value.
-
Retained Earnings: This is the portion of net income that is retained by the company rather than distributed as dividends, and it is a crucial component of stockholders' equity.
-
Treasury Stock: These are shares that were previously issued and later repurchased by the company, and they reduce total stockholders' equity.
Final Answer
The component that is not part of stockholders' equity is notes payable.
Similar Questions
All of the following are components of stockholders’ equity, except ____________.Multiple Choicenotes payablepaid-in-capitalretained earningstreasury stock
Which of these is not a part of equity? Group of answer choices 1.General reserve. 2.Retained earnings. 3.Contributed equity. 4.Dividends payable.
Which item(s) can be a component of shareholders' equity?Question 8Select one:a.Retained profits.b.Share capital.c.Reserves.d.All of the above.
Which of the following accounts is a stockholders' equity account?
Indicate whether each of the following items is an asset, liability, or part of stockholders’ equity.(a)Accounts receivableSelect an item
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.