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Fair Corporation issues 7,500 preferred shares for $25 per share.
-In the statement of financial position, the effects of the above transaction will be reported under
A) Liabilities.
B) Retained Earnings.
C) Share Capital.
D) Accumulated Other Comprehensive Income.

Question

Quizplus · Accepted Answer

The issuance of preferred shares is recorded under Share Capital in the statement of financial position, as it represents equity raised by the company through the sale of shares.

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