Different Classes of Stock Usually Are Issued To

question 39

Multiple Choice

Different classes of stock usually are issued to:

• A) maintain ownership control by holding the class of stock with greater voting rights.
• B) pay less in dividends between the classes of stock.
• C) fool investors into thinking that equity is equity and there is no difference in control or value features.
• D) to extract perquisites without the other class of stockholders knowing.

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Definitions:

Aging Analysis

An accounting process that categorizes accounts receivable based on the length of time an invoice has been outstanding.

Bad Debts

Accounts receivable that a company determines it will not be able to collect.

Unadjusted Trial Balance

A financial report showing all accounts and their balances before adjustments, serving as a check on the correctness of the sums of debit and credit balances.

Aging of Accounts Receivable

A document or method that organizes a business's accounts receivable based on the duration an invoice has remained unpaid.