The Amount of Stockholders' Equity in a Business Is Not

question 152

Multiple Choice

The amount of stockholders' equity in a business is not affected by

• A)the percentage of total assets held in cash.
• B)assets consumed in the process of earning revenues.
• C)the profitability of the business.
• D)the amount of dividends declared and paid to stockholders.

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Definitions:

Public Corporation

A Public Corporation is a company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over-the-counter market.

Shares

Shares represent units of ownership in a company, held by individuals or entities, entitling them to a portion of the corporation's assets and profits.

Public Markets

Platforms or venues where securities, commodities, and other financial instruments are traded openly and are accessible by the general public.

Authorized Shares

The upper limit of shares a corporation can legally distribute, as outlined in its articles of incorporation.