by using Subramanyam, Wild. Financial Statement Analysis 11th edition textbook, The shareholders equity can either be negative or positive. A negative shareholders equity shows that shareholders will have nothing left when assets are liquidated and used to pay all debts owed. A positive shareholders equity shows that the company has enough assets to meet any liabilities that may arise. The shareholders equity section in the balance sheet makes a distinction between contributed capital and retained earnings. Elaborate TWO (2) distinctions between these two major sources of equity financing. 10marks