Stan James Carelessly Left His Wallet in the Restroom of a Gas

question 33

Multiple Choice

Stan James carelessly left his wallet in the restroom of a gas station while on a business trip.He did not realize his wallet was gone until eight hours later when he went to check into his hotel.Stan called the credit card companies immediately,only to learn that the thief had charged $2000 on his American Express card,$450 on his MasterCard,and $75 on his gas credit card.Stan James' maximum liability on the cards is:

• A)$0.
• B)$50 per card.
• C)$50.
• D)none of the above

Understand how the issuance of common stock impacts financial statements, particularly paid-in capital and retained earnings.

Recognize the importance of paid-in capital as a main source of funding for corporations.

Acknowledge the significant role corporations play in the economy and their financial characteristics.

Comprehend the accounting treatment of par and no-par value stocks, including stated value.

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Definitions:

Fixed Costs

Expenses that do not change as a function of the activity of a business, within the relevant period.

Break-Even Point

The level of sales at which total revenues equal total costs, resulting in no net loss or gain.

Sales Mix

The composition of a company’s product or service sales, showing the relative proportions of each product or service sold.

Net Income

The total revenue minus total expenses, indicating the profitability of a company over a specific period.