Answer the Following Questions Regarding Stocks

question 97

Essay

Answer the following questions regarding stocks.
a.Why would a firm sell stocks instead of bonds?
b.What are some benefits,from the buyer's perspective,of stock ownership?

---

Definitions:

Workweek

A fixed, recurring period used to measure a worker's or business's hours worked, often consisting of five to seven consecutive days.

Accounting Period

A specific time frame in which financial transactions are recorded and financial statements are prepared, typically a year or a quarter.

Prepayment

Payments made in advance for goods or services, recorded as an asset until the corresponding goods or services are received.

Adjusting Entry

An accounting record made to update the book value of an asset or to correct or allocate income and expenses to the appropriate period.