Common Shares Are Reported on

question 16

Multiple Choice

Common shares are reported on

• A)the statement of financial position.
• B)the statement of changes in equity.
• C)both the statement of financial position and the income statement.
• D)both the statement of changes in equity and the statement of financial position.

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Definitions:

Indorses

Endorses or signs the back of a financial instrument (such as a check) to transfer rights to another party.

Credit Union

A member-owned financial cooperative that provides banking services, including savings and loan facilities, to its members.

Shelter Principle

The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC), but who derives his or her title through an HDC, acquires the rights of an HDC.

HDC Status

HDC status refers to being recognized as a Holder in Due Course, which grants certain legal protections in the context of financial instruments, emphasizing good faith acquisition and the absence of knowledge of defects.