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Asked by Gopika Murugesan on May 27, 2024

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The stockholders' equity section of a balance sheet includes capital contributed by owners and also retained earnings.

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing the owners' share in the corporation.

Balance Sheet

A financial statement that outlines a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial health.

  • Understanding the components and structure of the balance sheet, including stockholders' equity, assets, and liabilities.
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MC
Mahak Chhajed

Jun 01, 2024

Final Answer :
True
Explanation :
This is because the stockholders' equity section reflects the ownership interest of the company's shareholders, including both their capital contributions and the accumulated profits the company has retained over time (i.e. retained earnings).

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