Which of the Following Statements Is False Regarding the Use

question 116

Multiple Choice

Which of the following statements is false regarding the use of source documents?

• A)Checks and deposit slips are the main source documents backing up the bank statement.
• B)Retailers may use cash register tapes to recognize sales transactions.
• C)Stock certificates provide evidence of being a creditor of the company.
• D)Time cards may be used as a source of information to record wages.

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Definitions:

Convertible Debentures

Bonds that can be converted into a predetermined amount of the issuing company's equity at certain times during their life, usually at the discretion of the bondholder.

Conversion Price

The predetermined price at which convertible security, such as a bond or preferred stock, can be converted into a specified number of shares of common stock.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the company’s profits.

Exercise Price

The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.