​Match the Accounting Terminology with Its Definition and Example

question 42

Multiple Choice

​Match the accounting terminology with its definition and example.Note: Answers may be used more than once.
-​Creditors,mortgage,etc.

• A)accounts payable
• B)​assets
• C)​corporation
• D)​cost
• E)​economic entity assumption
• F)​liabilities
• G)​market value
• H)​monetary unit assumption
• I)​note payable
• J)​(paid-in)capital
• K)​partnership
• L)​proprietorship
• M)​retained earnings
• N)stockholders' equity

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Definitions:

Corporation's Capitalization

The total value of a corporation's issued shares of stock, bonds, and long-term debt, reflecting the market's assessment of its total worth.

Common Stock

Common Stock represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits via dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and often pays dividends at a fixed rate.

Bondholders

Individuals or entities that hold debt securities issued by governments or corporations, entitling them to receive a fixed or variable interest payments and the return of the principal upon maturity.