Asked by Zachary Whetstone on Jun 15, 2024
Verified
All of the following are normally found in a publicly-traded corporation's shareholders' equity section except
A) dividends in arrears.
B) accumulated other comprehensive income.
C) share capital.
D) retained earnings.
Shareholders' Equity
The portion of the company's assets that belongs to the shareholders after all liabilities have been subtracted.
Dividends in Arrears
Unpaid dividends of cumulative preferred stock for the designated period.
Accumulated Other Comprehensive Income
A component of shareholders' equity that includes unrealized gains and losses on certain types of investments, not recognized in the income statement.
- Attain an understanding of the notion of shareholders' equity and its integral parts.
- Recognize the components of the shareholders' equity section in financial statements.
Verified Answer
DE
Daisy EmanoJun 16, 2024
Final Answer :
A
Explanation :
Dividends in arrears are not found in the shareholders' equity section; they are specific to preferred shares and recognized in the notes to the financial statements, not under shareholders' equity.
Learning Objectives
- Attain an understanding of the notion of shareholders' equity and its integral parts.
- Recognize the components of the shareholders' equity section in financial statements.