Match Each of the Following Stockholders' Equity Concepts to the Most

question 181

Multiple Choice

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) .
-The number of shares sold to stockholders

• A)Authorized shares
• B)Issued shares
• C)Outstanding shares
• D)Par value
• E)Common stock
• F)Preferred stock
• G)Paid-In Capital in Excess of Par
• H)Transfer agent

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Definitions:

Operating Income

The profit earned from a firm's normal core business operations, excluding deductions of interest and taxes.

Fixed Costs

Expenses that do not change in proportion to the volume of goods or services a company produces.

Capacity

The maximum output or producing ability of a plant, machine, or company under normal or specific conditions.

Operating Profit

The earnings before interest and taxes (EBIT) generated from a company's core business operations.