The Total of the Owners' Claims to the Assets of a Corporation

question 101

Multiple Choice

The total of the owners' claims to the assets of a corporation is represented by the:

• A)balance of the Common Stock account.
• B)total retained earnings.
• C)total stockholders' equity.
• D)total assets of the corporation.

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Definitions:

Depreciation

The process of methodically allocating the expense of a physical asset over its functional life.

Sales Price

The amount at which goods or services are sold to customers, sometimes before discounts, taxes, or additional charges.

Equipment Cost

The total expense incurred in purchasing and preparing equipment for its intended use, including acquisition, delivery, and setup costs.

Land Account

An account in the financial statements that tracks the cost of land owned by a company.