If a company does not have any accumulated other comprehensive income (loss), st

ID: 2587907 • Letter: I

Question

If a company does not have any accumulated other comprehensive income (loss), stockholders' equity is the:

amount the company received in exchange for all stock issued plus the amount of Retained Earnings minus the cost of treasury stock.

amount the company received for all stock authorized plus the amount of Retained Earnings and treasury stock.

par value the company received for all stock issued plus the amount of Retained Earnings minus treasury stock.

amount the company received for all stock when issued minus the amount of Retained Earnings and treasury stock.

Explanation / Answer

Answer:

A) amount the company received in exchange for all stock issued plus the amount of Retained Earnings minus the cost of treasury stock.

Explanation to the answer

stockholders' equity is in absance of accumulated other comprehensive income (loss) is

= amount the company received in exchange for all stock issued

+the amount of Retained Earnings

-minus the cost of treasury stock.

check following example

stockholders' equity

Common stock, $0.01 par value, 100,000 shares authorized
, 52,000 shares issued

500000

Additional paid-in capital

200000

Total paid in capital

700000

Add:

Retained earnings

110000

Less: resury stock

-60000

Total shareholders' equity

750000