The Components of Equity Generally Recognised by Companies in a Balance

question 3

Multiple Choice

The components of equity generally recognised by companies in a balance sheet are:
I.Provisions.
II.Debentures
III.Share capital.
IV.Other reserves.
V.Retained earnings.

• A)I,II and III only
• B)I,III,IV and V only
• C)II,III and V only
• D)III,IV and V only.

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Definitions:

Canada Pension Plan

A government-run retirement pension plan in Canada that provides contributors and their families with partial replacement of earnings in the case of retirement, disability, or death.

Employment Insurance

A government program that provides temporary financial assistance to unemployed workers who meet certain eligibility criteria.

Employee Participation

The involvement of employees in decision-making processes within the organization, often resulting in better outcomes and increased commitment.

Benefits Plan

A set of health care, retirement, and other perks offered by employers to their employees beyond the regular salary or wage.