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#analyst-notes #cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

Owner's equity is usually divided into three parts:

[...]
Additional paid-in capital
Retained earnings

Answer

Capital stock

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Subject 1. Components and Format of the Balance Sheet
al stock agreements and the various restrictions on residual equity imposed by state corporation laws, liability agreements, and boards of directors make the owner's equity section one of the most difficult sections to prepare and understand. <span>This section is usually divided into three parts: Capital stock: the par or stated value of the shares issued. Additional paid-in capital: the excess of amounts paid in over the par or stated value. Retained earnings: the corporation's undistributed earnings. <span><body><html>

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status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
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