Which One of the Following Parties Is Considered a Stakeholder

question 61

Multiple Choice

Which one of the following parties is considered a stakeholder of a firm?

• A)Employee
• B)Short-term creditor
• C)Long-term creditor
• D)Preferred stockholder
• E)Common stockholder

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Definitions:

Fair Value

An estimate of the price at which an asset or liability would change hands between willing parties, not under duress, in an orderly transaction.

Initial Value Method

An accounting method where investments are recorded at their cost at the time of acquisition without subsequent adjustment for changes in market value.

Consolidation Worksheet

A tool used in accounting to combine the financial statements of a parent company with its subsidiaries to prepare a consolidated statement.

Equity Method

An accounting technique used to record investments in other companies by recognizing the investor's share of the investee's profits or losses.