Dual-Class Share Differentiates Different Classes of Common Share

question 40

True/False

Dual-class share differentiates different classes of common share. They are issued by companies to meet special needs such as when owners of a start-up firm need additional equity capital but don't want to relinquish voting control.

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Definitions:

Control Accounts

General ledger accounts that summarize the details of transactions recorded in subsidiary ledgers.

Cash Purchase

A transaction where goods or services are bought and paid for with physical currency at the time of purchase.

Inventory

Inventory encompasses the raw materials, work-in-progress goods, and the finished products that a company holds with the intention of selling them to earn revenue.

Multi-Column Purchases Journal

A specialized accounting journal that records the purchase transactions of a business in multiple columns for different types of purchases.