Two Classifications Appearing in the Share Capital Section of the Statement

question 17

Multiple Choice

Two classifications appearing in the share capital section of the statement of financial position are

• A)dividends payable and dividends distributable.
• B)share capital and retained earnings.
• C)preferred shares and common shares.
• D)contributed surplus and retained earnings.

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Definitions:

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a specified sum of money either on demand or at a specified future date.

Discharged Liability

Refers to a debt or obligation that has been fulfilled, canceled, or extinguished, relieving the debtor of any further responsibility.

Accommodation Party

A party who signs an instrument to provide credit for another party who has also signed the instrument.

Recover Money

The act or process of legally reclaiming monetary losses or damages through judicial or administrative procedures.