Q312
In balance sheet, sum of retained earnings and common stock are considered as
A.
preferred equity
B.
due equity
C.
common perpetuity
D.
common equity
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
In balance sheet, sum of retained earnings and common stock are considered as common equity. Common equity is the amount that all common shareholders have invested in a company. Most importantly, this includes the value of the common shares themselves.