Contributed equity does not include which of the following:
A)ordinary shares
B)retained earnings
C)preference shares
D)other financial instruments

Question

Quizplus · Accepted Answer

Contributed equity refers to the funds contributed by shareholders in exchange for ownership in the company, such as ordinary shares and preference shares. Retained earnings, on the other hand, are the profits earned by the company that are reinvested in the business and not distributed to shareholders as dividends. Therefore, retained earnings are not considered as part of contributed equity. Other financial instruments may or may not be included in contributed equity depending on their nature and whether they represent ownership in the company.

Contributed Equity Does Not Include Which of the Following