Accounts that make up owners' equity may include:
A) preference shares.
B) debentures.
C) general reserves.
D) preference shares and general reserves.

Question

Quizplus · Accepted Answer

Owners' equity accounts include elements that represent the owners' stake in the company. Preference shares are a form of equity, as they represent ownership interest, albeit with certain preferences over common shares. General reserves are also part of owners' equity, as they represent retained earnings set aside for general purposes. Debentures, however, are a form of debt and do not represent ownership in the company.

Accounts That Make Up Owners' Equity May Include