Question

multiple choice question

contributed capital of $1,000,000 is found in the ____ section of the ____.

retained earnings; balance sheet
operating income; income statement
stockholders equity; balance sheet
retained earnings; income statement

Explanation:

Identify the nature of contributed capital

Contributed capital represents the total amount of cash or other assets that shareholders have given to a corporation in exchange for its stock. This is a component of ownership interest.

Determine the financial statement and section

Ownership interest is reported under the stockholders' equity section of the balance sheet. Therefore, contributed capital is found in the stockholders' equity section of the balance sheet.

Answer:

• retained earnings; balance sheet
• operating income; income statement
• stockholders' equity; balance sheet (Correct answer)
• retained earnings; income statement