Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
How does the issuance of additional shares affect share capital?
How does the issuance of additional shares affect share capital?
- Reduces the total share capital
- Increases the share capital per share (correct)
- Has no impact on the share capital
- Dilutes the share capital value
What is the relationship between share capital and shareholders' equity?
What is the relationship between share capital and shareholders' equity?
- Share capital is separate from shareholders' equity
- Share capital is a source of revenue for the company
- Share capital is a liability for the company
- Share capital is a part of shareholders' equity (correct)
What is the primary purpose of accounting for share capital?
What is the primary purpose of accounting for share capital?
- To calculate the company's total assets
- To track the amount of funds raised through the issuance of shares (correct)
- To determine the market value of the shares
- To assess the company's profitability
