Which of the Following Statements Is True with Regard to Contributed

question 117

Multiple Choice

Which of the following statements is true with regard to contributed capital?

• A)Preferred stock is stock that has been retired.
• B)It is very unlikely corporations may have more than one class of stock outstanding.
• C)The outstanding number of shares is the maximum number of shares that can be issued by a corporation.
• D)The shares that are in the hands of the stockholders are said to be outstanding.

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Definitions:

Sales

This refers to the revenue a company generates from selling goods or services in the normal course of its business.

Price-Earnings Ratio

A valuation metric that measures a company's current share price relative to its per-share earnings, indicating investor expectations.

Net Income

The amount of profit a company generates after deducting all its costs, expenses, taxes, and interest from its total revenue.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.