Which One of These Is Least Likely to Change Proportionally

question 87

Multiple Choice

Which one of these is least likely to change proportionally with sales?

• A) Depreciation
• B) Investment in receivables
• C) Cost of goods sold
• D) EBIT

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Definitions:

Paid-in Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares themselves plus any amount paid in excess.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims on the company's resources.

Treasury Stock

Shares initially released to the public and then bought back by the corporation that issued them, diminishing the overall supply of shares on the market.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock, above the par value of the shares.