Shareholders' equity is usually comprised of

A) common shares and dividends declared.
B) common shares and retained earnings.
C) dividends declared and retained earnings.
D) net income and retained earnings.

Retained Earnings

The portion of a company's profits that is kept or retained and not distributed as dividends to shareholders, used for reinvestment in the business or to pay debt.

Common Shares

Equity securities that represent a portion of the ownership of a corporation, typically granting voting rights and dividends.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities.