Table 13-1
the Following Selected List of Accounts with Their

question 96

Multiple Choice

Table 13-1
The following selected list of accounts with their normal balances was taken from the general ledger of Grant Corporation as of December 31, 2014:
$\begin{array}{|l|r|}\hline \text { Cash } & \$ 173,500 \\\hline \text { Common shares, } 100,000 \text { shares authorized, } 38,000 \text { shares issued } & 190,000 \\\hline \text { Retained earning } & 131,500 \\\hline \text { Cash dividends payable } & 25,000 \\\hline \text { Preferred shares, } 300,000 \text { shares authorized } 200,000 \text { shares issued } & 500,000 \\\hline\end{array}$
-Refer to Table 13-1.Which account should be listed first in the shareholders' equity section?

• A) Retained earnings
• B) Common shares
• C) Contributed surplus
• D) Preferred shares

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Definitions:

Stock Price

The cost of purchasing a share of a company's stock, reflecting what investors are willing to pay based on their expectations of future company performance.

Personal Taxes

Taxes levied on individuals or households based on their income, property, and consumption, which contribute to federal, state, or municipal revenues.

Debt Financing

The method of raising capital through the sale of bonds, bills, or notes to individuals or institutional investors, which must be repaid at a future date, typically with interest.

Financial Policy

Guidelines or a framework set by a company to control and manage its financial operations, including investment decisions and debt management.