When Reporting Stockholders' Equity on the Balance Sheet,a Corporation Lists

question 24

Multiple Choice

When reporting stockholders' equity on the balance sheet,a corporation lists the accounts in the following order:

• A)Retained Earnings,Preferred Stock,Common Stock.
• B)Common Stock,Preferred Stock,Additional Paid-in Capital,Retained Earnings.
• C)Preferred Stock,Common Stock,Additional Paid-in Capital,Retained Earnings.
• D)Retained Earnings,Common Stock,Paid-in Capital in Excess of Par-Common.

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Definitions:

Resold

A term referring to items that have been sold and then sold again, either by the original buyer or by another party.

Additional Paid-In Capital

The amount of equity capital that is more than the par value of issued shares, representing additional investment from shareholders.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders, usually in lieu of cash dividends.

Cash Dividends

Direct payments of profit made to shareholders, proportionate to the number of shares they own.