The Equity Section of a Statement of Financial Position Has

question 156

Multiple Choice

The equity section of a statement of financial position has two components:

• A) share capital and liablities.
• B) assets and liablities.
• C) share capital and retained earnings.
• D) share capital and assets.

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Definitions:

Obligated

Required by a legal or moral duty to do something or responsible for an action.

Overdue

Overdue signifies being past the time or date by which a task, obligation, or payment was due to be completed or made.

Principal

In finance, the original sum of money borrowed or invested, excluding any interest or dividends. In law, the primary party who authorizes another (the agent) to act on their behalf.

Installments

Payments divided over a period of time for a debt or purchase, rather than paying the total amount upfront.