Which of the following is the correct order of accounts in the shareholders' equity section of the balance sheet?

Question

Quizplus · Accepted Answer

Ordinary share capital is the most basic type of share capital and represents the ownership interest of the common shareholders in the company. Preference share capital is a type of share capital that has a preference over ordinary share capital in terms of dividends and repayment of capital in the event of liquidation. Retained earnings are the profits of the company that have been retained for use in the business. Therefore, the correct order of accounts in the shareholders' equity section of the balance sheet is ordinary share capital, preference share capital, and retained earnings.

Which of the Following Is the Correct Order of Accounts