Case Interview Prep

Answer - D - The stockholder’s equity section of the corporation’s balance sheet needs to have paid in capital, treasury stock, accumulated other comprehensive income, and retained earnings all reported.

Key Takeaway: Each of these sections are required in the stockholder’s equity section of a corporation’s balance sheet:

· Paid in capital-the amount a corporation received when it issued its shares of stock.
· Treasury stock-the shares that have been reacquired by the Corporation but not retired.
· Accumulated other comprehensive income-income not reported as net income on a corporation's income statement (for example: currency exchange or an unrealized gain).
· Retained earnings-net profit kept by the corporation for business activities.