CAF-1 · Chapter 8 · Question 14 of 15
Which of the following statements about irredeemable preference shares is true in the context of equity?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) They form part of the entity's share capital within equity.
Explanation
Irredeemable preference shares do not have a mandatory repayment obligation, so they are classified as part of share capital within equity.
More Statement of Changes in Equity MCQs
- Q1Which of the following is considered a 'revenue reserve' (distributable reserve) in the statement of changes in equity?
- Q2How should a final dividend declared just after the year-end be presented in the financial statements for that year?
- Q3Where must an entity present the amount of dividends recognized as distributions to owners during the period?
- Q4Which of the following causes an overall change in equity during a period?
- Q5An interim dividend of Rs. 15 million is paid during the financial year. How is this recorded in the financial statements?