A Brokerage Account in Which Purchases Can Only Be Made

question 47

Multiple Choice

A brokerage account in which purchases can only be made if sufficient funds are available is called a(n) ____ account.

• A) Clearing
• B) Access available
• C) Cash
• D) Call
• E) Margin

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Definitions:

Balance Sheet

A document that outlines a firm's assets, liabilities, and the equity held by shareholders, as of a certain date.

Stockholders' Equity

The portion of a company's capital that belongs to the shareholders, calculated as total assets minus total liabilities.

Stockholders' Equity

Stockholders' equity represents the ownership interest in a company, calculated as total assets minus total liabilities.

Liabilities

Financial obligations or debts a company owes to others, which must be paid back in the future.