Shareholders' Equity Can Be Defined As

question 44

Multiple Choice

Shareholders' equity can be defined as:

• A)total assets plus total liabilities
• B)the market value of a firm's assets
• C)fixed assets minus long-term debt minus net working capital
• D)the residual value of a corporation after all debts have been paid
• E)the cash flow from assets minus the cash flow to creditors

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Definitions:

Blank Indorsement

An endorsement on a financial instrument, such as a check, that specifies no endorsee, making it payable to the bearer.

Trust

A fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.

Deposit Only

A restriction placed on a bank account, indicating that the funds can only be deposited and cannot be directly withdrawn or used for other transactions.

Restrictive Endorsements

Limiting conditions or instructions written on the back of negotiable instruments, like checks, controlling their use or further transfer.