The Following Amounts Are Reported in the Ledger of Mariah

question 49

Multiple Choice

The following amounts are reported in the ledger of Mariah Company:
What is the balance in the Common Stock account?

• A)$44,000.
• B)$32,000.
• C)$48,000.
• D)$42,000.

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Definitions:

Payable to Order

Refers to a financial instrument that is made payable to the specific order of a person or an entity.

Consumer Paper

Consumer paper consists of financial documents and instruments that reflect personal indebtedness, such as loans, mortgages, and credit agreements.

Holder in Due Course

A party that holds a negotiable instrument and has certain rights to payment not subject to defenses.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee named on the document.