Examveda

Until word of preferred is used, an equity in balance sheet is treated as

A. common equity

B. preferred equity

C. due equity

D. common perpetuity

Answer: Option A

Solution (By Examveda Team)

Until word of preferred is used, an equity in balance sheet is treated as common equity. Common equity is the amount that all common shareholders have invested in a company. Most importantly, this includes the value of the common shares themselves.

This Question Belongs to Commerce >> Financial Management

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