Financial Statements Are Most Commonly Prepared

question 107

Multiple Choice

Financial statements are most commonly prepared:

• A)semi-monthly.
• B)monthly,quarterly and annually.
• C)whenever management feels like it.
• D)weekly.

---

Definitions:

Common Stock

Represents ownership shares issued by a corporation, giving holders voting rights and a share in the company's profits via dividends.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions to shareholders, reinvested in the business.

Measure Of Liquidity

Indicators that demonstrate a company's ability to cover its short-term obligations with its liquid assets.

Debt-Equity Ratio

A gauge of how much a corporation leans on debt, by dividing all owed sums by the total equity of its stockholders.