Stockholders Equity Verified Exam Questions and Answers Latest update 2026/2027

Stockholders Equity Verified Exam Questions and Answers Latest
update 2026/2027

Question:
and

Answer:



Question:
what does contributed capital include?

Answer:
preferred stock, common stock, APIC, and RE, minus Treasury Stock, sometimes OCI

Question:
Retained earnings is also referred to as ____________ capital

Answer:
earned

Question:
treasury stock is a _____________ SE

Answer:
contra

Question:
does APIC represent income?

Answer:
no

Question:
why does retained earnings not equal or represent cash?

Answer:
under accrual basis, Net Income does not equal cash and since NI goes into RE, then RE does not
equal cash

, Question:
if RE has a debit balance, what is it called?

Answer:
deficit

Question:
Can dividends cause RE to be negative?

Answer:
no

Question:
retained earnings are restricted for the _________ of ________

Answer:
cost; treasury stock

Question:
par is the designated dollar amount per shared ___________ in the corporate ________ and printed on
the stock __________

Answer:
reported; charter; certificate

Question:
if there is no par value, what value is used?

Answer:
stated value

Question:
who determines the stated value of a stock?

Answer:
Board of Directors

Question:
is the stated value of a stock printed on the certificate or in the corporate charter?

Answer:
no