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Amounts invested and reinvested by a company's owners is called: Multiple Choice stockholders' equity in a corporation. \( \begin{array}{l}\text { assets, or the resources presently owned by a business that } \\ \text { generate future economic benefits. } \\ \text { a trial balance, proving that all amounts are accounted for. } \\ \text { liabilities, or the amounts presently owed by a business. }\end{array} \)

Ask by Tran Mejia. in the United States
Jan 26,2025

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Amounts invested and reinvested by a company's owners are called **stockholders' equity in a corporation**.

Solución

The correct answer is: **Stockholders' equity in a corporation.** ### Explanation: - **Stockholders' Equity:** This represents the owners' claims on the assets of the corporation after all liabilities have been deducted. It includes amounts invested by the owners (such as common stock) and any retained earnings or additional paid-in capital that has been reinvested back into the company. - **Assets:** These are the resources owned by a business that are expected to generate future economic benefits, but they do not specifically represent the amounts invested by the owners. - **Trial Balance:** This is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal. It ensures that the entries in a company's bookkeeping system are mathematically correct, but it's not related to owner investments. - **Liabilities:** These are obligations that the company owes to outsiders, such as loans, accounts payable, mortgages, etc. They represent amounts owed, not the investments made by the owners. ### Summary: **Amounts invested and reinvested by a company's owners are referred to as _stockholders' equity_ in a corporation.**

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The Deep Dive

In the realm of accounting, stockholders' equity represents the owners' claim to the assets of the corporation after all liabilities have been subtracted. It reflects the cumulative amount that owners have invested, including retained earnings which are profits not distributed to shareholders. Essentially, it's the financial interest that the shareholders have in the company! In practical terms, stockholders' equity plays a crucial role in assessing a company’s financial health. It helps investors gauge how well a company is performing, especially when it comes to measuring profit distributions and potential for growth. It’s often analyzed alongside other financial statements to provide a comprehensive view for potential and current investors!

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