Which of the Following Accounts Is Reported in the Equity

question 52

Multiple Choice

Which of the following accounts is reported in the equity section of the statement of financial position?

• A)Dividends.
• B)Share capital-ordinary.
• C)Revenues
• D)All of the choices are reported in the equity section of the statement of financial position.

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Definitions:

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which is the value written on the face of the security.

Interest Rate Risk

The risk that an investment's value will change due to a change in the absolute level of interest rates.

Reinvestment Risk

The risk of having to reinvest income or principal at a lower interest rate in a fluctuating interest rate environment.

Default Risk

The possibility that a borrower will fail to pay back a loan or meet contractual obligations.