The equity section of a statement of financial position has two components:
A) share capital and liablities.
B) assets and liablities.
C) share capital and retained earnings.
D) share capital and assets.

Question

Quizplus · Accepted Answer

The equity section of a statement of financial position consists of two main components: share capital and retained earnings. Share capital represents the amount of capital that has been contributed by shareholders and retained earnings represent the accumulated profits that have been retained in the business. Therefore, option C (share capital and retained earnings) is the correct answer. Options A, B, and D do not accurately reflect the components of the equity section.

The Equity Section of a Statement of Financial Position Has