Share capital represents:
A) The amount invested in the business by shareholders when shares were initially issued by a corporation.
B) The equity for a business organized as a corporation.
C) The equity accumulated through profitable operations that have not been paid out as dividends.
D) The price paid by the current owners to acquire shares in the corporation, regardless of whether they bought the shares directly from the corporation or from another shareholder.

Question

Quizplus · Accepted Answer

Share capital represents the amount invested in the business by shareholders when shares were initially issued by a corporation. It is the initial contribution of the shareholders to the corporation in exchange for ownership rights. Share capital contributes to the equity of the company and is recorded on the balance sheet.

Share Capital Represents