Match the Terms with the Definitions

question 15

Multiple Choice

Match the terms with the definitions.
-Legal document which includes the name of the corporation, the location of the principal office, the purpose of the business, the description of the capital stock, and the names and addresses of the incorporators.

• A)preemptive right
• B)participating preferred stock
• C)par value
• D)capital stock
• E)organization costs
• F)charter
• G)common stock
• H)nonparticipating preferred stock
• I)noncumulative preferred stock
• J)no-par stock
• K)incorporators
• L)issued stock
• M)market value
• N)mutual agency

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Definitions:

Purchase of Stock

The act of buying shares in a company, either through a stock exchange or directly from the company.

Investing Activities

Financial transactions related to the acquisition or sale of long-term assets and other investments not considered as cash equivalents.

Statement of Cash Flows

A report detailing the impact of variations in balance sheet positions and income on cash and cash equivalents, segmented into operating, investing, and financing activities.

Increase in Accounts Receivable

A rise in the amount of money owed to the business by its customers for goods or services delivered.