Which One of the Following Items Does Not Accurately Describe

question 295

Multiple Choice

Which one of the following items does not accurately describe stockholders' equity?

• A) Stockholders' equity is created when a company issues stock to an investor.
• B) Total stockholders' equity should be equal to Assets in an publicly held entity.
• C) Stockholders' equity represents amounts contributed by the owners to the company.
• D) As owners of shares in a corporation, stockholders have claims on the assets of a business when it is profitable.

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Definitions:

Ripples

Fluctuations or variations in the output voltage of a power supply, often resulting from incomplete suppression of AC waveform within DC output.

Harmonics

In electrical systems, harmonics are frequencies that are integer multiples of the base fundamental frequency, leading to distortion in power systems.

Cosines

Refers to the cosine function, a trigonometric function that represents the ratio of the adjacent side to the hypotenuse of a right-angled triangle.

Frequency

The number of complete cycles of AC voltage that occur in 1 s.