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Stockholders' equity is usually divided into which two broad categories? contributed capital and appropriated capital appropriated...

Stockholders' equity is usually divided into which two broad categories?

contributed capital and appropriated capital

appropriated capital and retained earnings

retained earnings and appropriated capital

earned capital and contributed capital

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Answer #1

Answer: Earned Capital and Contributed Capital

Stockholders Equity has two major Catagories

  1. Earned capital: capita Earned by the firm in the name of the net income, belongs to stockholders But kept with the organization, normally reported as a retained earnings .
  2. Contributed Capital : This is the Capital invested by the stock shoulder by purchasing the common stock of the firm.
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