Which of the Following Is Not a Stockholders' Equity Account

question 25

Multiple Choice

Which of the following is not a stockholders' equity account?

• A) Common stock.
• B) Capital stock.
• C) Retained earnings.
• D)Accumulated depreciation.
• E) Paid-in-capital in excess of par.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain range, such as rent, salary, insurance, and loan payments.

Break-even Point

The break-even point is the level of production or sales at which total revenues equal total costs, resulting in no net profit or loss.

Variable Cost

A variable cost changes in proportion to the level of production or business activity, such as raw materials or direct labor expenses.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.