Why this is mistaken
Any APIC balance can absorb any equity debit. APIC retains its transaction source. Apply the required method and available source-specific balance before using it.
Where to watch
When this mistake may appear
- A balanced total equity amount appears to support the transaction.
Check your work
Your work may contain this mistake if:
- Posts the event without reconciling class rights, share counts, dates, and source-specific equity balances.