Which of the Following Is the Correct Order of Accounts

question 157

Multiple Choice

Which of the following is the correct order of accounts in the stockholders' equity section of the balance sheet? (Assume preferred stock is issued at par.)

• A) Common stock, Preferred stock, Paid-in capital in excess of par, Retained earnings.
• B) Common stock, Paid-in capital in excess of par, Preferred stock, Retained earnings
• C) Preferred stock, Paid-in capital in excess of par, Common stock, Retained earnings
• D) Preferred stock, Common stock, Paid-in capital in excess of par, Retained earnings

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Definitions:

Forms

The structures, shapes, or external appearances of objects as perceived or conceptualized.

Contradictory Propositions

Propositions that cannot both be true at the same time, as they make opposite claims.

Forms

In philosophy, especially in Platonic thought, the ideal or perfect essence of something, which exists beyond the physical representation.

Contradictory

Qualities, statements, or propositions that are in direct opposition to each other, such that if one is true, the other must be false.