All of the Following Are Common Methods Used to Calculate

question 47

Multiple Choice

All of the following are common methods used to calculate depreciation except for:

• A) Straight-line method
• B) Reducing-balance method
• C) Units-of-production method
• D) Sum-of-the-provisions method

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividends that are paid out before those of common shareholders.

Treasury Stock

Securities initially released and afterward repurchased by the issuer, lessening the total shares actively traded in the market.

Reissued

When a previously issued stock or bond is sold again by the corporation, often after being bought back from the market.

Paid-In Capital

The total amount of money shareholders have invested in a company in exchange for equity, including shares at par value and additional paid-in capital.