If the Balance in a Forfeited Shares Account Is Refundable

question 29

Multiple Choice

If the balance in a forfeited shares account is refundable to the owners of those shares, then the forfeited shares account is classified in the financial statements as:

• A) income.
• B) equity.
• C) expenses.
• D) liabilities

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Definitions:

B2B Website

An online platform designed for the transactions and interactions between businesses, facilitating trade, services, or information exchange.

E-Commerce Website

An online platform that allows businesses and individuals to buy and sell goods or services over the Internet.

Lock Icon

A symbol typically used to indicate that something, such as a file, message, or network, is secure or encrypted.

Insecure Website

A website that does not use encryption to protect the data being exchanged, making it vulnerable to cyber threats.