Equity shares represent:  A. Debt ownership in a company  B. A fixed-rate interest in a company  C. Ownership stake in a company  D. Priority claim on company assets

Equity can be described as claims ofGroup of answer choicescreditors on total assets.owners on total assets.customers on total assets.auditors on total assets.

What does owners' equity represent in a business?Question 1Answera.Business owners' share of the companyb.Company's assetsc.Company's liabilitiesd.Company's expenses

These shares represent the ownership of a company and thus the capital raised by issue of such shares is known as ownership capital or owner’s funds.Select one:a.equity sharesb.share capitalc.watered sharesd.owned shares

Which of the following is false for owner’s equity?Select one:a.Equity is defined as the residual interest in the assets of the entity after deducting all its liabilities.b.Equity is not a claim against assets, it is what is left over after all liabilities are deducted from assets.c.Equity differs from liabilities in that liabilities are obligations which must be settled out of the assets of the entity, whilst equity is not an obligation which has to be settled.d.Equity is the same as a liability because it is an obligation which must be settled with the owner of the entity.

Which of the following statements concerning equity is incorrect?Group of answer choicesIn the Conceptual Framework equity cannot be defined independently of assets and liabilities.Equity represents lenders' claims on the net assets of the entity.Equity represents the owner's claim on the net assets of the entity.Two components of company equity are contributed capital and retained earnings.