Q375
Until word of preferred is used, an equity in balance sheet is treated as
A.
common equity
AnswerB.
preferred equity
C.
due equity
D.
common perpetuity
Answer: Option A
Solution
Answer: Option A
Solution:
Until word of preferred is used, an equity in balance sheet is treated as common equity. Common equity is the amount that all common shareholders have invested in a company. Most importantly, this includes the value of the common shares themselves.