Transactions Affecting Stockholders' Equity Include

question 211

Multiple Choice

Transactions affecting stockholders' equity include

• A) stockholder investments and payment of liabilities
• B) stockholder investments, dividends, earning of revenues, and incurrence of expenses
• C) stockholder investments, earning of revenues, incurrence of expenses, and collection of accounts receivable
• D) stockholder dividends, earning of revenues, incurrence of expenses, and purchase of supplies on account

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Definitions:

Money Market Mutual Funds

Investment funds which gather capital from investors to buy short-term, low-risk securities such as Treasury bills and commercial paper.

M1

A category of the money supply that includes all physical money, such as coins and currency, as well as demand deposits, checking accounts, and negotiable order of withdrawal (NOW) accounts.

M2

A measure of the money supply that includes cash and checking deposits (M1) as well as near money, such as savings deposits, money market securities, and time deposits.

Federal Reserve

The central banking system of the United States, responsible for nation's monetary policy, financial regulation, and stability of the financial system.