Share Capital Consists Of

question 51

Multiple Choice

Share capital consists of:

• A)amounts received from shareholders.
• B)earnings generated by the company.
• C)amounts paid by customers.
• D)capital raised by issuing debentures.

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Definitions:

Revenue Account

An account in the general ledger that records the income earned by a company, from sales or services, before any deductions.

Net Loss

Occurs when a company's total expenses exceed its total revenues during a specific period, indicating negative profitability.

Revenue Accounts

Accounts that track the income earned from the sale of products or services.

Capital

Capital refers to the financial resources that businesses use to fund their operations and grow, including equity, debt, and retained earnings.