What Are the Two Categories of Shareholders' Equity Usually Found

question 9

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)share capital and retained earnings.

---

Definitions:

Coupon Rate

The interest rate on a bond, which is calculated as a percentage of the face value, and paid to the bondholders periodically until maturity.

Par Value

It represents the nominal or face value of a security, such as a share or bond, and is the minimum price at which such securities might be issued originally.

Collateralized Bonds

Bonds that are secured by a collateral asset, providing higher security to bondholders in case of issuer's default.

Issuing Firm

A company or entity that releases securities into the financial market for the first time, often through initial public offerings (IPOs) or bond sales.