With Respect to Shareholders' Equity,indicate Which One of the Following

question 23

Multiple Choice

With respect to shareholders' equity,indicate which one of the following statements is correct.

• A)Revenues are recorded as credits to the revenue accounts and expenses are recorded as debits to the expense accounts.
• B)Revenues are recorded as debits to the revenue accounts and expenses are recorded as credits to the expense accounts.
• C)Contributions (investments)by owners are recorded as debits to the share capital accounts.
• D)Withdrawals by owners are recorded as credits to the share capital accounts.

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Definitions:

Rate of Return

The positive or negative return on an investment over a given period, measured as a percentage of the investment's initial price.

Global Funds

Mutual funds that invest in companies located anywhere in the world, including the investor’s own country.

Diversified Portfolio

An investment strategy that spreads investments across various asset classes to reduce risk.

Stocks Worldwide

Equity securities issued by companies from around the globe, representing ownership interests in those businesses.