An Intangible Asset That Records the Initial Cost of Forming

question 62

Multiple Choice

An intangible asset that records the initial cost of forming the corporation, such as legal and incorporating fees is called:

• A) Common Stock.
• B) Organization cost.
• C) Preferred Stock.
• D) Paid-in Capital.

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Definitions:

Creditors

Individuals or institutions that lend money or extend credit, expecting to be repaid, usually with interest.

Great Recession

A severe global economic downturn that occurred from late 2007 through mid-2009, marked by significant declines in GDP, high unemployment, and financial instability.

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A situation where a country's imports exceed its exports during a specific period, leading to a negative balance of trade.

2008

A year marked by the global financial crisis, often associated with the fall of major banks and economic recession.