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 a 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.