Examveda

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

Answer: Option D

Solution (By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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