When a Corporation Has Only One Class of Stock, the Stock

question 120

Multiple Choice

When a corporation has only one class of stock, the stock is called:

• A) Preferred stock.
• B) No-par value stock.
• C) Common stock.
• D) Stated value stock.
• E) Par value stock.

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Definitions:

Accounting Period

A specific period of time for which financial accounts are prepared, commonly a year or a quarter.

Salaries Expense

Represents the total amount paid to employees as wages or salaries before any deductions, recognized in the accounting period in which employees' services are utilized.

Year-End Adjusting Entry

An accounting entry made at the end of a fiscal year to update accounts for revenues earned or expenses incurred but not yet recorded.

Credit To Cash

A financial transaction where received credits (receivables) are converted into cash, often through collections or sales.