Asked by Cristian Perez Lara on Jun 19, 2024
Verified
In the statement of financial position, the effects of the above transaction will be reported under
A) Liabilities.
B) Retained Earnings.
C) Share Capital.
D) Accumulated Other Comprehensive Income.
Accumulated Other Comprehensive Income
A component of shareholders' equity on the balance sheet, representing gains and losses not reflected in net income, such as foreign currency items, unrealized gains/losses on certain investments, and pension plan adjustments.
- Become versed in the processes of recording and financial disclosure of equity transactions.
- Familiarize oneself with the differentiation and ramifications of diverse share types in a corporation’s financial documentation.
Verified Answer
NK
napapha kitkulananta-akeJun 25, 2024
Final Answer :
C
Explanation :
When a corporation issues preferred shares, the proceeds from the sale of these shares are reported under Share Capital in the statement of financial position. This reflects the equity financing obtained through the issuance of shares.
Learning Objectives
- Become versed in the processes of recording and financial disclosure of equity transactions.
- Familiarize oneself with the differentiation and ramifications of diverse share types in a corporation’s financial documentation.