If a Corporation That Has Been in Business for Many

question 33

Multiple Choice

If a corporation that has been in business for many years (for example IBM) wants to raise funds by issuing new common stock, its stock will be sold in the market.

• A)primary
• B)secondary
• C)debt
• D)money
• E)In this case, the stock can be sold in more than one of the above markets.

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Definitions:

Equivalent Unit

A concept used in process costing that represents the amount of work done on incomplete units, expressed in terms of fully completed units.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and the cost of goods sold based on the average cost of all inventory units.

Process Costing System

An accounting method used to assign costs to units of production in industries where the production process is continuous.

Ending Work In Process

The balance of unfinished goods at the end of an accounting period, which includes material, labor, and overhead costs incurred.