Accounting for Share Capital Quiz
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Accounting for Share Capital Quiz

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@IlluminatingViolet

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Questions and Answers

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?

  • 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?

  • 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

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