Revenue & Sales Corporation and Software Solutions, Inc

question 11

Multiple Choice

Revenue & Sales Corporation and Software Solutions, Inc., enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $4,500. Software Solutions transfers the right to payment under the contract to Creditline Company. Creditline is

• A) an assignor.
• B) an assignee.
• C) an obligee.
• D) a delegate.

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Definitions:

Common Stock

Equity ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Stock Split

A measure taken by a company to split its current shares into numerous ones, aiming to increase the shares' liquidity.

Par Value

The nominal or face value of a stock or bond, representing the minimum amount the security is stated to be worth.

Common Stock Account

An equity account on a company's balance sheet representing the total amount of money invested by common stockholders plus the retained earnings of the company.