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All of the following are components of stockholders’ equity, except ____________.Multiple Choicenotes payablepaid-in-capitalretained earningstreasury stock

Question

All of the following are components of stockholders’ equity, except ____________.Multiple Choicenotes payablepaid-in-capitalretained earningstreasury stock

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Solution

The correct answer is "notes payable". This is not a component of stockholders’ equity. Instead, it is a liability, representing a written promise to pay a certain amount of money on a specific future date. On the other hand, paid-in capital, retained earnings, and treasury stock are all components of stockholders’ equity.

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