The Shareholders Are the Owners of a Company REQUIRED:
A)Briefly Explain the Meaning of Each of the Four

question 43

Essay

The shareholders are the owners of a company. The shareholders' equity of Adventure Travel Agency Pty Ltd is set out below. (Note that all shares were issued when the company was originally set up and there have been no subsequent issues.)
Adventure Travel Agency Pty Ltd
Statement of Financial Position (extract)as at 30 June 2018
Shareholders' equity
Share Capital -
$\begin{array}{ll}60,000 \text { ordinary shares sold for } \$ 10 \text { each } & \$ 600,000 \\\text { Retained profits } & 20,000 \\\text { General reserve } & 12,000 \\\text { Asset revaluation reserve } & \underline{180,000} \\\text { Total equity } & \$ 812,000\end{array}$ REQUIRED:
a)Briefly explain the meaning of each of the four components of shareholders' equity, giving an example of how each might have arisen.
b)Indicate which of the four components are legally available for the payments of cash dividends.
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Definitions:

Onlooker Play

Action in which children simply watch others at play but do not actually participate themselves.

Functional Play

Play activity that involves simple, repetitive movements with or without objects, common in young children and contributing to their physical development.

Associative Play

A stage of play where children engage in separate activities but interact by sharing materials and communicating with each other.

Onlooker Play

A form of play where a child watches others play but does not join in, often seen in early childhood development.