If the Balance in a Forfeited Shares Account Is Refundable

question 5

Multiple Choice

If the balance in a forfeited shares account is refundable to the owners of those shares,then the forfeited shares account is classified as a component of:

• A)income
• B)liabilities
• C)equity
• D)expense.

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Definitions:

Balance Theory

A psychological theory suggesting that individuals strive for consistency and balance in their relationships and beliefs for psychological comfort.

Unit Relation

The way in which different components or elements are connected and interact within a system or structure.

Endorsement

The act of publicly recommending or supporting a product, service, or idea, often by a celebrity or recognized authority.

Attitude Object

An entity that is the focus of an individual's attitude, encompassing anything toward which a person has a positive or negative evaluation or feeling.