SEARCH THE BUSINESS GLOSSARY
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.