What Is the Primary Means That a Corporation Uses to Communicate

question 103

Multiple Choice

What is the primary means that a corporation uses to communicate financial information to its shareholders and creditors?

• A)News stories printed in the business press.
• B)Financial statements.
• C)Letters from management sent to the local newspaper editor.
• D)Information circulated by fraud examiners.

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Definitions:

Employee Compensation

The total amount of financial and non-financial benefits provided to employees in exchange for their work.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Stockholders' Equity

The portion of a company's total value that is owned by its shareholders, represented by the company's assets minus its liabilities.

Cumulative

Describing a total that includes all amounts accumulated over a period of time, often used in the context of dividends that are accrued and paid at a later date.