Catalina Owns 100 _____ Stock of NxtGen Solutions,a Software Firm

question 129

Multiple Choice

Catalina owns 100 _____ stock of NxtGen Solutions,a software firm.It means that she has voting rights on company decisions at NxtGen Solutions,but only residual claims on the company's assets.

• A)preferred
• B)principal
• C)management
• D)common

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Definitions:

Purchases Journal

A record of all purchase transactions for inventory, usually on credit, maintained by a business.

Credit Balance

A situation in accounting where the total credits in an account exceed the total debits, commonly seen in liability accounts.

Doubtful Accounts

Doubtful accounts are receivables that a company believes might become uncollectible in the future, leading to their designation as a bad debt expense.

Sales Discounts

Reductions to the selling price of goods or services, offered to customers to encourage prompt payment or to incentivize bulk purchases.