An Amount of Assets Defined by State Law That Stockholders

question 163

Multiple Choice

An amount of assets defined by state law that stockholders must invest and leave invested in a corporation is called the:

• A)Par value of preferred.
• B)Minimum legal capital.
• C)Premium capital.
• D)Stated value.
• E)Working capital.

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Definitions:

Continuing Operations

The parts of a business that are expected to continue operating in the future, as opposed to operations that have been discontinued or sold.

Selected Unrealized Gains

Gains on investments that have increased in value but have not yet been sold or realized.

Stockholders' Equity

The ownership stake of shareholders in a corporation, symbolized by the value of the company's assets once all debts are subtracted.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and net income.