Which of the Following Statements Would Be True If You

question 162

Multiple Choice

Which of the following statements would be true if you own stock in a company?

• A)You are an owner of the retained earnings and capital stock of the company.
• B)You have a claim to the assets of the business.
• C)You have the right to receive interest on an annual basis.
• D)You have the right to a portion of the company's revenues each accounting period.

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Definitions:

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit.

Inventory

The raw materials, work-in-process products, and finished goods that a company holds for the purpose of sale in the near future.

Net Loss

A situation where total expenses exceed total revenues during a specific period, resulting in negative profit.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specific period.