Two Classifications Appearing in the Contributed Capital Section of the Balance

question 1

Multiple Choice

Two classifications appearing in the contributed capital section of the balance sheet are

• A) preferred shares and common shares.
• B) contributed capital and retained earnings.
• C) share capital and additional contributed capital.
• D) share capital and retained earnings.

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Definitions:

Arithmetic

A branch of mathematics that deals with numbers and the basic operations such as addition, subtraction, multiplication, and division.

Distributive Property

A property in algebra that allows you to multiply a sum by multiplying each addend separately and then add the results.

Like Terms

Terms in an algebraic expression that have the same variables raised to the same power and can therefore be combined.

Simplify Expression

The process of performing all possible arithmetic operations within an expression to reduce it to its simplest form.