Which One of the Following Statements Is True

question 133

Multiple Choice

Which one of the following statements is true?

• A)Corporate dividends for common stock must be paid in cash only.
• B)Stockholders must elect the board of directors.
• C)The selling price of stock is determined by how much the corporation is willing to receive.
• D)Corporations are required by law to have two stockholder meetings each year.
• E)Stockholders may vote only by proxy.

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Definitions:

Expected Cash Collections

The projected amount of money a company anticipates receiving from customers in a future period, based on sales and credit terms.

Selling And Administrative Expense

Costs related to the selling of products and the management of the company, excluding production costs.

Merchandise Purchases Cost

is the total cost associated with buying inventory for resale, including the purchase price, shipping, and handling fees.

Budgeted Cost

An estimated amount set aside for expenditures in the budgeting process, serving as a financial guideline for spending.