Question

The stockholders' equity section of Culver Corporation balance sheet...

A) Shows liabilities and assets
B) Lists revenue and expenses
C) Displays ownership interests
D) Presents cost of goods sold

Answer 1

The stockholders' equity section of a balance sheet displays ownership interests in a corporation.

Step-by-step explanation:

Stockholders' equity, also known as shareholders' equity or equity capital, is the residual interest in the assets of a company after deducting liabilities. In other words, it represents the ownership interest of the shareholders in the company. Stockholders' equity is a key component of a company's balance sheet and is calculated as the difference between the total assets and total liabilities. It is divided into two main components: contributed capital and retained earnings.

The stockholders' equity section of a balance sheet displays ownership interests in a corporation. It represents the residual interest in the assets of the company after deducting liabilities. This section shows the amount that stockholders have invested in the company, as well as any retained earnings.