Multiple Choice
Which of the following is a true statement regarding owners' equity?
A) APB Statement 4 and SFAC No. 6 both reflect the entity view of the firm.
B) Owners' equity consists of only two components: contributed capital and retained earnings.
C) In a sole proprietorship, there is no legal distinction between contributed capital and earned capital.
D) Dividends are legally paid only out of retained earnings.
Correct Answer:
Verified
Correct Answer:
Verified
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