Examveda
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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