Shareholders' Equity

question 236

Multiple Choice

Shareholders' equity:

• A) Includes common stock, paid in surplus, retained earnings, and long-term debt.
• B) On a statement of financial position is equivalent to the market value of the outstanding shares of stock.
• C) Includes all of a firm's earnings retained by the firm to date.
• D) Increases, all else equal, when the dividends paid are greater than the net income for a year.
• E) Includes the book value of any bonds issued by the firm.

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Definitions:

Percentage Form

A way of expressing numbers as a fraction of 100, symbolized by the percent sign (%).

Sticker Price

The full retail price of a vehicle, as displayed on a sticker in the car's window; commonly used to refer to the initial asking price of goods.

GST

The Goods and Services Tax is a form of value-added tax applied to almost all goods and services purchased for use within the nation.

PST

Provincial Sales Tax; a tax levied by certain provinces in Canada on the sale of goods and services.