Equity and Long-Term Liabilities

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Questions and Answers

Which one of the following is included in the calculation of Common Equity?

  • Accounts Payable
  • Long term Liabilities
  • Inventory
  • Retained Earnings (correct)

Which one of the following is considered a Long term Liability?

  • Accounts Receivable
  • Accrued Expenses
  • Bonds Payable (correct)
  • Short-term Loans

What is the main difference between Common Equity and Long term Liabilities?

  • Common Equity represents the debts owed by a company, while Long term Liabilities represent the ownership interest in a company
  • Common Equity represents short-term obligations, while Long term Liabilities represent long-term obligations
  • Common Equity represents long-term obligations, while Long term Liabilities represent short-term obligations
  • Common Equity represents the ownership interest in a company, while Long term Liabilities represent the debts owed by a company (correct)

Which one of the following is included in the calculation of Dividends per Share?

<p>Earnings per Share (D)</p> Signup and view all the answers

Which one of the following is considered an expense in the calculation of Dividends per Share?

<p>Interest Expense (A)</p> Signup and view all the answers

Which one of the following is included in the calculation of Interest per Share?

<p>Interest Expense (A)</p> Signup and view all the answers

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