Which of the Following Statements About Shares of a Corporation

question 44

Multiple Choice

Which of the following statements about shares of a corporation is TRUE?

• A)All shares issued by a corporation must have voting rights.
• B)All shares can be voted by proxy
• C)All shares must be equal, none can have a preference
• D)All shares can be converted into bonds
• E)Both C and D

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Definitions:

Favorable Variance

The difference between actual results and expected (budgeted) results that indicates more efficient or cost-effective performance.

Actual Cost

The actual expenses incurred in acquiring an asset or delivering a service, including all relevant expenditures without estimation.

Budgeted Cost

The estimated or planned amount of money allocated for a particular purpose or period of time.

Direct Materials Cost Variance

A measure that evaluates the difference between the actual costs of direct materials used in production and the standard costs.