Several Top Executives of Waterton Corporation Also Sit on the Corporation's

question 21

Multiple Choice

Several top executives of Waterton Corporation also sit on the corporation's board, so they are called

• A) Outside directors.
• B) Dual directors.
• C) Cooperating directors.
• D) Authoritative directors.
• E) Inside directors.

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Definitions:

Expense Accounts

Accounts used to record all expenditures incurred by a business during an accounting period, excluding costs of goods sold.

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in an expense on the income statement.

Debt Ratio

A financial ratio that compares the amount of debt a company has to its total assets.

Risk

The potential for loss or the chance that an investment's actual return will differ from the expected outcome.