Different Classes of Common Shares Are Usually Issued

question 11

Multiple Choice

Different classes of common shares are usually issued:

• A) to give some shareholders control of the firm.
• B) to pay more dividends to a specific class of common shares.
• C) to vote at any director meeting of the corporation.
• D) none of the above.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that might not be collected, reducing the total value of accounts receivable by a corresponding amount.

Credit Sales

Sales made on credit, meaning payment is to be received after the delivery of goods or services.

Credit Card Discount

Fee charged by the credit card company for its services.

Net Sales

The revenue a company makes after subtracting the costs for returns, compensation for damaged or missing items, and any permitted discounts.