Which of the Following Transactions Is Represented by the Diagram

question 47

Multiple Choice

Which of the following transactions is represented by the diagram below?

• A)A junkyard holds weekly sales where it sells its entire inventory.
• B)A shoe store sells products to consumers.
• C)A stay-at-home mom creates furniture for doll houses.When one piece is finished,she sells it on Amazon.com.
• D)Netflix sells movies to consumers through its online downloading service.

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Definitions:

Compensatory Stock Option Plans

Employee benefit plans which grant the option to purchase company stock at a discounted price as compensation or incentive.

Performance-Based Stock Option Plans

Incentive programs that grant options to employees as rewards for achieving specific performance targets.

Convertible Preferred Stock

A type of preferred stock that holders can convert into a predetermined number of common shares, often at a set price.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, usually with fixed dividends.