classification of stockholders' equity Definition | Business Dictionaries from
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Business Definition for: classification of stockholders' equity
classification of stockholders' equity

process of using group headings within the stockholders' equity section of the balance sheet. The headings include capital stock, paid-in capital, retained earnings, and treasury stock. Capital stock represents stock that has been issued (e.g., issued common or preferred stock) and stock to be issued at a later date (e.g., stock option). Paid-in capital consists of such items as contributed capital in excess of par and donations. Retained earnings are the accumulated earnings less cash dividends. Treasury stock is a deduction in determining stockholders' equity.

Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.


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