Companies Can Issue Different Classes of Common Stock

question 1

Multiple Choice

Companies can issue different classes of common stock.Which of the following statements concerning stock classes is CORRECT?

• A) All common stocks, regardless of class, must have the same voting rights.
• B) All firms have several classes of common stock.
• C) All common stock, regardless of class, must pay the same dividend.
• D) Some class or classes of common stock are entitled to more votes per share than other classes.
• E) All common stocks fall into one of three classes: A, B, and C.

---

Definitions:

Receivables Management

The process of managing the money owed to a business by its customers, aiming to ensure timely collection of outstanding invoices to maintain cash flow.

Accounts Receivable

Represents the money due to a company for goods or services that have been delivered or used but not yet paid for by customers.

DSO

DSO (Days Sales Outstanding) is a financial metric that calculates the average number of days it takes for a company to collect payments after a sale has been made.

Aging Schedule

An accounting table that shows the breakdown of receivables by age, helping manage and collect debts.