In General,the Order of Reporting Stockholders' Equity on the Balance

question 88

Multiple Choice

In general,the order of reporting stockholders' equity on the balance sheet is:

• A)Common Stock,Preferred Stock,Paid-in Capital in Excess of Par,Retained Earnings,Treasury Stock.
• B)Preferred Stock,Common Stock,Treasury Stock,Paid-in Capital in Excess of Par,Retained Earnings.
• C)Preferred Stock,Common Stock,Paid-in Capital in Excess of Par,Retained Earnings,Treasury Stock.
• D)Retained Earnings,Preferred Stock,Common Stock,Paid-in Capital in Excess of Par,Treasury Stock.

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Definitions:

Raw Materials Purchase

The acquisition of basic materials needed for the production of goods, a critical input in the manufacturing process.

Raw Materials Inventory

The stock of basic materials that are required to manufacture goods, held by a company awaiting to be used in the production process.

Raw Materials Purchases

Refers to the total cost of all raw materials bought by a company over a specific period for use in its production process.

Standard Cost System

A cost accounting system that uses standard costs for materials, labor, and overhead to control and reduce costs.