Contributed capital of $1,000,000 represents ______.Multiple choice question.accumulated earnings minus accumulated dividendsdonations received from creditorsthe amount stockholders have invested in exchange for stockthe accumulated profits earned on stockholders' investment
Question
Contributed capital of $1,000,000 represents ______.Multiple choice question.accumulated earnings minus accumulated dividendsdonations received from creditorsthe amount stockholders have invested in exchange for stockthe accumulated profits earned on stockholders' investment
Solution
The correct answer is "the amount stockholders have invested in exchange for stock".
Contributed capital, also known as paid-in capital, is the total value of the stock that shareholders have bought directly from the company. It represents the investment by the stockholders in the company. It does not include any earnings retained by the company, nor any dividends paid out by the company. Therefore, it is not related to accumulated earnings, dividends, or donations from creditors.
Similar Questions
Contributed capital of $1,000,000 is found in the ______ section of the ______.Multiple choice question.retained earnings; balance sheetoperating income; income statementretained earnings; income statementstockholders' equity; balance sheet
The money a corporation receives from investors by issuing stock is called ______.Multiple choice question.Treasury StockContributed CapitalRetained EarningsAccumulated Other Comprehensive Income
At the beginning of the year, paid-in capital was $164 and retained earnings was $94. During the year, the stockholders invested $48 and dividends of $12 were declared and paid. Retained earnings at the end of the year were $104.Net income for the year was:Multiple Choice$40.$20.$30.$22.
When a company capitalizes a cost, its ______ increase.Multiple choice question.liabilitiesexpenseslong-lived assetsrevenuesretained earnings
Working capital refers to the excess of a firm's Blank______.Multiple choice question.total assets over its total liabilitiescurrent assets over its current liabilitiescash and accounts receivable over its accounts payable and other accrued liabilitiescurrent assets over its total liabilities
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.