Which One of the Following Items Does Not Accurately Describe

Multiple Choice

Which one of the following items does not accurately describe stockholders' equity?

A) Stockholders' equity is created when a company issues stock to an investor.
B) Total stockholders' equity should be equal to Assets in an publicly held entity.
C) Stockholders' equity represents amounts contributed by the owners to the company.
D) As owners of shares in a corporation, stockholders have claims on the assets of a business when it is profitable.