An Individual or Organization Entitled to Receive Payments from a Business

question 214

Multiple Choice

An individual or organization entitled to receive payments from a business is known to the business as a:

• A) Debtor.
• B) Shareholder.
• C) Controller.
• D) Creditor.
• E) Bookkeeper.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Common Stock

Shares that constitute ownership in a corporation, providing voting rights and entitling shareholders to a portion of the company’s profits through dividends.

Cash Dividend

A payment made by a company to its shareholders, usually in cash, out of its profits or reserves.

Bond Payable

A long-term debt instrument issued by corporations and governments, promising to pay the bondholder a specified sum of money at future dates.