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:

Withholding Allowance Certificate

A withholding allowance certificate is a tax form that an employee fills out to indicate their tax situation to the employer, used to calculate the amount of income tax to withhold from the employee's paycheck.

Individual Income Tax

A tax levied on the income of individuals, including wages, salaries, and investment returns.

State Unemployment Compensation Tax

A tax imposed by state governments on employers to fund unemployment benefits for workers who have lost their jobs.

Time-and-a-half

This refers to a pay rate that is one and a half times the regular rate, typically paid for overtime or hours worked beyond the standard workweek.