The Shareholders' Equity Section Is Usually Divided into Which Four

question 37

Multiple Choice

The shareholders' equity section is usually divided into which four parts?

• A)preferred shares, common shares, retained earnings, contributed surplus
• B)preferred shares, common shares, retained earnings, other comprehensive income
• C)capital shares, contributed surplus, retained earnings, accumulated other comprehensive
• Income
• D)capital shares, appropriated retained earnings, unappropriated retained earnings,
• Contributed surplus

---

Definitions:

Shareholder Value

The value delivered to shareholders because of management's ability to grow earnings, dividends, and share price.

RAP

Regulatory Accounting Principles, which are guidelines for accounting practices in the insurance industry.

Loan Charge-offs

The process by which a bank or other financial institution removes a loan from its balance sheet after determining that it will not be repaid and is, therefore, uncollectible.

Bank Capital

The funds that are held by a bank that are used as a cushion against potential losses, ensuring the bank's stability and financial health.