All of the Following Are Normally Found in a Corporation's

question 126

Multiple Choice

All of the following are normally found in a corporation's stockholders' equity section except

• A)dividends in arrears.
• B)common stock.
• C)paid-in capital.
• D)retained earnings.

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Definitions:

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair value of the net identifiable assets.

Voting Stock

Shares that give the stockholder the right to vote on matters of corporate policy making and the election of the board of directors.

Fair Value

The price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.