Which of the Following Is the LEAST Profitable Method of Liquidating

question 4

Multiple Choice

Which of the following is the LEAST profitable method of liquidating markdown merchandise?

• A) Sell the merchandise to another retailer.
• B) Consolidate the unsold merchandise.
• C) Place the remaining merchandise on an Internet auction site.
• D) Give the merchandise to charity.
• E) Carry the merchandise over to the next season.

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Definitions:

Subscription Receivable-common Stock

Subscription receivable-common stock refers to the amount due from subscribers who have agreed to purchase common stock but have not yet paid.

Stock Subscription Plan

A mechanism for employees or investors to buy shares of a company's stock, often at a discount.

Paid in Capital

The portion of the shareholders' equity that represents the amount investors have put into the company by purchasing shares directly from the company.

Common Stock

Represents ownership shares in a corporation, providing voting rights and a residual claim on corporate earnings in the form of dividends.