The State Charter Allows a Corporation to Issue Only a Certain

question 24

Multiple Choice

The state charter allows a corporation to issue only a certain number of shares of each class of stock. This amount of stock is called

• A) treasury stock
• B) issued stock
• C) outstanding stock
• D) authorized stock

Understand the nature and treatment of unearned revenues in accounting.

Grasp the concept and calculation of the debt ratio and its significance.

Understand the various phases and types of bankruptcy, including Chapter 7, Chapter 11, and the concept of liquidation vs. reorganization.

Calculate and interpret the payout to creditors in a bankruptcy scenario.

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Definitions:

FICA Tax

Federal insurance contributions tax; a U.S. federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.

FUTA Tax

The Federal Unemployment Tax Act tax, which employers pay to fund state workforce agencies.

SUTA Tax

State Unemployment Tax Act tax, a payroll tax that employers must pay to fund the government unemployment insurance program.

Payroll Taxes Expense

The total amount of state and federal taxes a company is obligated to pay based on its employees' wages.