The Amount Shown on the Statement of fiNancial Position as Shareholders

question 33

True/False

The amount shown on the statement of financial position as shareholders' equity represents the current market value of the owners' residual claim against the company.

---

Definitions:

Bonds Payable

A long-term debt instrument issued by a corporation or government, promising to pay back with interest the money borrowed from investors.

Stockholder's Equity

What remains of a corporation's assets after liabilities are accounted for, denoting the interest of owners.

Long Term

Referring to assets, liabilities, or investments expected to last, or commitments expected to be active, for more than one year.

Treasury Bonds

Long-term government bonds issued by the U.S. Department of the Treasury, known for their safety and used by investors to diversify portfolios.