C选项

问题如下：

Question Which of the following best describes common equity?

选项：

A.The initial investment by common shareholders in the company B.The resources owned or controlled by a company C.The residual interest in a company’s assets after deducting its liabilities

解释：

Solution

C is correct. Common equity is a component of the balance sheet and represents the owners’ residual interest in the company’s assets after deducting its liabilities.

A is incorrect. Common equity includes the initial investment by the shareholders and the retained earnings; this definition is incomplete.

B is incorrect. Assets are a component of the balance sheet and represent resources controlled by an enterprise as a result of past events and from which future economic benefits to the enterprise are expected to flow.