Which of the Following Accounts Are a Standard Component of Stockholders

question 49

Multiple Choice

Which of the following accounts are a standard component of stockholders' equity?

• A)Dividends
• B)Unearned Income
• C)Prepaid Expenses
• D)Additional Paid In Stock

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Definitions:

Treasury

The department within a government or corporation responsible for managing monetary assets and debt obligations.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with predetermined dividend payments.

Cumulative

Describing something that increases or accumulates over time, often used in reference to dividends or data.

Par Value

A nominal or face value assigned to securities, such as stock, which has no direct relation to their market value.