What Are the Two Categories of Shareholders' Equity Usually Found

question 131

Multiple Choice

What are the two categories of shareholders' equity usually found on the statement of financial position of a corporation?

• A) Share capital and long-term liabilities.
• B) Share capital and property, plant, and equipment.
• C) Retained earnings and notes payable.
• D) Contributed capital and retained earnings.

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Definitions:

Adjusted Trial Balance

A listing of all company accounts that will appear on the financial statements after adjustments have been made for errors, accruals, and deferrals.

Ledger

The principal book or computer file for recording and totaling economic transactions by account type, with debit and credit account records validated by a trial balance.

Unadjusted Trial Balance

A preliminary report that lists all the balances of a company's accounts before making any adjusting entries.

Post-Closing Trial Balance

A list of all the account balances of a business after closing entries for the accounting period have been made, ensuring the accounts are ready for the next period.