In Published Annual Reports

question 100

Multiple Choice

In published annual reports

• A) subdivisions within the stockholders' equity section are routinely reported in detail.
• B) capital surplus is used in place of retained earnings.
• C) the individual sources of additional paid-in capital are often combined.
• D) retained earnings is often not shown separately.

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Definitions:

Profit Margin

A financial metric expressed as a percentage that measures the amount of net income earned with each dollar of sales by comparing the net income and the revenue.

Greatest Source of Funds

Typically refers to the primary means or largest contributor of operational or investment capital within an organization or economy.

Sale of Inventory

The process of selling the goods that a company manufactures or purchases to sell in the normal course of doing business.

Increase in Long-term Debt

An increase in long-term debt indicates a company has borrowed more funds that are due for repayment beyond the next twelve months.