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Initial investments contributed to a company are which of the following? A. Shareholder's Capital and Debt B. Debt and Retained Earnings C. Shareholder's Capital and Assets​

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Answer:

The answer is C. Shareholder's Capital and Assets.

Explanation:

Stockholders' equity, also referred to as shareholders' or owners' equity, is the remaining amount of assets available to shareholders after all liabilities have been paid. It is calculated either as a firm's total assets less its total liabilities or alternatively as the sum of share capital and retained earnings less treasury shares. Stockholders' equity might include common stock, paid-in capital, retained earnings, and treasury stock.

Conceptually, stockholders' equity is useful as a means of judging the funds retained within a business.

Contributed capital, also known as paid-in capital, is the cash and other assets that shareholders have given a company in exchange for stock. Investors make capital contributions when a company issues equity shares based on a price that shareholders are willing to pay for them. The total amount of contributed capital or paid-in-capital represents their stake or ownership in the company.

Contributed capital may also refer to a company's balance sheet item listed under stockholders' equity, often shown alongside the balance sheet entry for additional paid-in capital.