An Award of Stock That Is Not Transferable or Subject

question 61

Multiple Choice

An award of stock that is not transferable or subject to forfeiture for a period of years is called

• A)phantom stock.
• B)treasury stock.
• C)restricted stock.
• D)preferred stock.

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Definitions:

Market

A place or mechanism where parties engage in exchange of goods, services, or information.

Balance Sheet

A financial statement that shows the assets, liabilities, and shareholders' equity of a company at a specific point in time, reflecting the company's financial position.

Bonds Payable

A long-term debt instrument issued by a corporation or government, promising to pay back with interest the money borrowed from investors.

Stockholder's Equity

What remains of a corporation's assets after liabilities are accounted for, denoting the interest of owners.