Which of the Following Types of Stock Is Considered Least

question 48

Multiple Choice

Which of the following types of stock is considered least risky for investors?

• A)common stock
• B)par value stock
• C)no-par stock
• D)preferred stock

---

Definitions:

Prepaid Insurance

Payments made for insurance policies in advance; these are recorded as an asset until the coverage period elapses, at which point they become an expense.

Trial Balance

A worksheet used in accounting that consolidates all ledger balances into columns for debits and credits, with both columns having equal totals.

Liability Account

An accounting record that captures the amounts owed to others, representing claims against a company’s assets.

Owner's Equity

The portion of a company's assets that belongs to the owners after all liabilities have been subtracted.