What is Financial Statement? Shareholders' Equity MCQs
Shareholders' Equity MCQs
Share Capital: The value of shares issued by the company to its shareholders.
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| What is Financial Statement? Shareholders' Equity MCQs |
Treasury
Stock: The value of
the company's own shares that have been repurchased and are held in treasury.
MCQs
Shareholders'
Equity represents:
a) The total
assets of a company
b) The total
liabilities of a company
c) The total
investment by shareholders in a company
d) The total
revenue generated by a company
Answer:
c) The total investment by shareholders in a company
Shareholders'
Equity?
a) Accounts Payable
b) Long-term
Debt
c) Share
Capital
d) Accounts
Receivable
Answer:
c) Share Capital
Retained
Earnings are calculated as:
a) Revenue
minus expenses
b) Assets
minus liabilities
c) Share
capital plus dividends
d) Profits
minus dividends
Answer:
d) Profits minus dividends
What does
Treasury Stock represent?
a) The value
of shares issued by the company to its shareholders
b) The
accumulated profits or losses earned by the company
c) The value
of the company's own shares that have been repurchased
d) The total
investment by shareholders in a company
Answer:
c) The value of the company's own shares that have been repurchased
component of
Shareholders' Equity?
a) Accounts
Payable
b) Accounts
Receivable
c) Common
Stock
d) Prepaid
Expenses
Answer:
c) Common Stock
Share
Capital represents:
a) The value
of the company's own shares that have been repurchased
b) The
accumulated profits or losses earned by the company
c) The value
of shares issued by the company to its shareholders
d) The total
liabilities of a company
Answer:
c) The value of shares issued by the company to its shareholders
the measure of
profitability?
a) Share
Capital
b) Retained
Earnings
c) Treasury
Stock
d) Earnings
per Share
Answer:
d) Earnings per Share
What happens
to Shareholders' Equity when dividends are paid?
a) It
increases
b) It
decreases
c) It
remains unchanged
d) It
depends on the amount of dividends paid
Answer:
b) It decreases
Which
financial statement shows Shareholders' Equity?
a) Balance
Sheet
b) Income
Statement
c) Cash Flow
Statement
d) Statement
of Retained Earnings
Answer:
a) Balance Sheet
If a company
has negative Retained Earnings, it indicates:
a) The
company is in financial distress
b) The
company has distributed large dividends
c) The
company has high levels of debt
d) The
company has accumulated losses over time
Answer:
d) The company has accumulated losses over time
source of
Shareholders' Equity?
a) Borrowing
money from a bank
b) Selling
inventory to customers
c) Issuing
shares to investors
d) Paying
suppliers for goods purchased
Answer:
c) Issuing shares to investors
Which component
of Shareholders' Equity represents the accumulated profits or losses earned by
the company since its inception?
a) Share
Capital
b) Retained
Earnings
c) Treasury
Stock
d) Long-term
Debt
Answer: b) Retained Earnings
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