Final answer:
Common Stock, Preferred Stock, and Additional Paid-in Capital represent amounts invested by shareholders. Retained Earnings show reinvested earnings while Treasury Stock indicates reacquired shares by the company and is not an investment by shareholders.
Step-by-step explanation:
The accounts that represent amounts shareholders have invested in a company are Common Stock, Preferred Stock, and Additional Paid-in Capital. Common Stock and Preferred Stock represent equity ownership in a company. When a company issues these types of stocks, it receives capital from shareholders in exchange for ownership shares. Additional Paid-in Capital represents the amount shareholders have paid in excess of the par value of the stock.
Retained Earnings, on the other hand, represent the cumulative profits a company has earned and reinvested in itself rather than distributed as dividends. Treasury Stock represents shares that were issued and then reacquired by the company; thus, it is not an investment by shareholders but rather a reduction in shareholders' equity.
Overall, it's essential to understand the difference between equity financing through selling stock, which benefits shareholders with potential dividends and capital gains, and the company's internal earnings, represented by Retained Earnings.