Shareholder's Equity Components

C

All of the selections appear in the Shareholders' Equity section of the balance sheet.

Shareholder's equity, also known as stockholders' equity or owners' equity, represents the residual interest in the assets of a company after deducting liabilities. It represents the ownership interest in a company held by the shareholders.

Let's go through each component mentioned and determine whether it belongs to shareholder's equity:

I. Preferred equity: Preferred equity refers to a class of stock that has certain preferential rights and privileges over common equity. These rights may include a fixed dividend rate, priority in receiving dividends, and a preference in liquidation. Preferred equity is considered part of shareholder's equity because it represents an ownership interest in the company.

II. Retained earnings: Retained earnings represent the cumulative net income of a company that is retained within the business rather than being distributed to shareholders as dividends. Retained earnings reflect the company's profitability and accumulated earnings over time. Retained earnings are an integral component of shareholder's equity because they represent the portion of earnings that have been reinvested in the business.

III. Treasury shares: Treasury shares refer to shares of a company's own stock that it has repurchased from the shareholders. These shares are held by the company itself and are not considered outstanding shares. While treasury shares are not included in the calculation of common equity, they are still considered part of shareholder's equity because they represent the company's ownership interest in itself.

Based on the above explanations, we can conclude that all three components (I. Preferred equity, II. Retained earnings, and III. Treasury shares) are part of shareholder's equity.

Therefore, the correct answer is:

C. I, II & III