The Two Basic Sources of Stockholders' Equity Are ________

question 31

Multiple Choice

The two basic sources of stockholders' equity are ________.

• A) common stock and bonds
• B) common stock and preferred stock
• C) paid-in capital and retained earnings
• D) no-par and stated value stock

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Definitions:

Normal Balance

The usual balance of an account in the accounting system, where asset and expense accounts typically have a debit balance, and liability, equity, and revenue accounts have a credit balance.

Discount Period

The timeframe within which a buyer can take advantage of a discount for paying an invoice early.

F.O.B Shipping Point

Free on Board Shipping Point, a term indicating that the buyer takes responsibility for goods the moment they leave the seller's premises.

Discount Period

The time frame in which a buyer may take advantage of a discount offered by a seller for early payment.