Answer:
Retained earnings.
Step-by-step explanation:
Equity represents the ownership interest in a company and includes the value of the assets that remain after all the liabilities have been paid. Equity is composed of two main components: contributed capital and retained earnings.
Contributed capital represents the funds that have been invested in the company by its owners, such as through the sale of stocks or bonds. This capital is recorded on the balance sheet as stockholders' equity.
Retained earnings are the profits that a company has chosen to keep and reinvest in the business instead of distributing them as dividends to shareholders. This is recorded on the balance sheet as a part of stockholders' equity.
Together, contributed capital and retained earnings represent the ownership interest in a company and are used to calculate its net worth.