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

---

Definitions:

Accounting Cycle

The four-step procedure of an accounting system: examining source documents, recording transactions in an accounting journal, posting recorded transactions, and preparing financial statements.