As Part of a Careers in Accounting Program Sponsored by Accounting

question 223

Essay

As part of a Careers in Accounting program sponsored by accounting organizations and supported by your company, you will be taking a group of high school students through the accounting department in your company. You will also provide them with various materials to explain the work of an accountant. One of the materials you will provide is the Equity section of a recent statement of financial position.
Required:
Prepare a sentence or two explaining each major section: Share Capital, Share Premium, and Retained Earnings. You should try to be brief but clear.

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Definitions:

Marginal Utility

The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.

Utility-Maximizing Rule

An economic principle stating that consumers allocate their income to purchase the combination of goods and services that maximizes their utility.

Consumption Mix

The combination of goods and services consumed by an individual or in an economy, reflecting preferences, income levels, and other factors.

Marginal Utilities

The increased happiness or advantage gained by a consumer from consuming an extra unit of a good or service.