Which One of the Following Statements Is Not True About

question 58

Multiple Choice

Which one of the following statements is not true about ordinary shares?

• A)Ordinary shareholders have limited liability.
• B)Ordinary shares are considered to have no fixed maturity.
• C)Ordinary shareholders have the right to vote on the selection of the board of directors for the company.
• D)Owners of ordinary shares are guaranteed dividend payments by the company.

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Definitions:

Ending Inventory

The aggregate sum of products ready for purchase at the closure of a financial period.

Perpetual Inventory System

A bookkeeping approach that immediately logs the buying or selling of inventory via computerized point-of-sale systems and enterprise asset management software.

Physical Units

A method of measuring production or inventory in terms of actual physical items or volumes, rather than monetary value or time.

Inventory Records

Documentation and tracking of a company's stock of goods or materials, essential for managing inventory levels and financial reporting.