Accumulated Depreciation Is Used to Reduce What Type of Account

question 40

Multiple Choice

Accumulated Depreciation is used to reduce what type of account on the balance sheet?

• A)Current Asset
• B)Capital Assets or Fixed Assets
• C)Liability
• D)Owners Equity

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple shares to increase liquidity without changing the shareholders' equity.

Par Value

The nominal or face value of a stock or bond as assigned by the issuing company, which may bear no relation to its market value.

Preferred Stock Dividend

Cash distributions that are paid to holders of a company's preferred shares at a specified rate and before dividends are paid to common stockholders.

Earnings Per Common Share

A financial metric used to gauge the profitability of a company on a per-share basis, calculated as net income less dividends on preferred stock divided by the average number of common shares outstanding.