Which item can be a component of shareholders' equity?
A) share capital
B) retained earnings
C) reserves
D) all of the above

Question

Quizplus · Accepted Answer

All three options (share capital, retained earnings, and reserves) can be components of shareholders' equity. Share capital represents the initial investments made in a company by shareholders, retained earnings are the profits that the company has earned but not distributed as dividends, and reserves are funds set aside by the company for specific purposes, such as future expansions or contingencies. Therefore, all three options can contribute to shareholders' overall equity in the company.

Which Item Can Be a Component of Shareholders' Equity