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Select all that apply Which of the following should be classified as stockholders' equity? (Check all that apply.) \( \square \) Retained Earnings \( \square \) Accounts Receivable \( \square \) Common Stock \( \square \) Deferred Revenue

Ask by Harrington Wyatt. in the United States
Feb 02,2025

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- Retained Earnings - Common Stock

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The following items should be classified as **stockholders' equity**: - ☑ **Retained Earnings** - ☑ **Common Stock** - ☐ Accounts Receivable - ☐ Deferred Revenue ### Explanation: 1. **Retained Earnings**: Represents the cumulative amount of net income retained by the company rather than distributed to shareholders. It is a key component of stockholders' equity. 2. **Common Stock**: Represents ownership shares issued by the company to shareholders. It is a fundamental element of stockholders' equity. 3. **Accounts Receivable**: This is an **asset**, not part of stockholders' equity. It represents money owed to the company by customers for goods or services delivered. 4. **Deferred Revenue**: This is a **liability**, not part of stockholders' equity. It represents money received by the company for goods or services not yet delivered or performed. --- *If you have any more questions or need further clarification on financial statements or accounting principles, feel free to ask!*

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Extra Insights

Did you know that stockholders' equity represents the owners' claim after all liabilities have been deducted? It’s like the cherry on top of the corporate cake, highlighting what shareholders truly own! Retained earnings are profits not distributed as dividends, while common stock represents ownership shares in the company. In real-world application, understanding stockholders' equity is crucial for investors! It helps in assessing a company's financial health. For instance, if retained earnings are growing, it indicates that the company is reinvesting profits rather than distributing them. Keep your eyes on that balance sheet for valuable insights!

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Ifyou controlled NYC' buifeci, what would you prioritise? Why? Insfructions! Carefully read the passage on New York City's budget. Answer the question below in complete sentences, usiag examples frum the excerpt to support your answer. New York City"s budget is one of the largest munieipal budgets in the world, totaling approximately \( \$ 85 \) bililon annually. This budget is a financial plan that reflects the city's prioritics, focusing on sectors liko cducation, publio safety, housing, nanitation, and cconomic development. For example, a significant portion of the budget goes to public education, supporting over 1,800 nchools and providing services for 1.1 million students. Similarly, publio safety and emergency services like the NYPD and FDNY receive substantial funding to maintain order and respond to crises. The budget is developed through a detailed negotiation process between the Mayor's Office and the City Counetl, with input from community members, advocates, and interest groups. Revenue for the budget comes from various sources, including property taxes, income taxes, sales taxes, and federal and state aid. These sources must legally match the elty's expenditures, ensuring the budget iş balanced each year. While the budget process aims to meet the needs of New Yorkers, it often involves difficult trade-offs. Policymakers must decide how to allocato limited resources to meet the city's diverse needs while addressing pressing challenges like housing shortages, public transportation maintenance, and climato resilience projects. The decisions made in the budgeting process shape the quality of life for all city residents. Why is it essential for Now York City to havo a balanced budget?
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