A Substance Has a Variable Composition

question 26

Multiple Choice

A substance has a variable composition. Choose the appropriate classification from the response list below:

• A) could be an element or a compound
• B) could be an element but not a compound
• C) could be a compound but not an element
• D) could not be an element nor a compound

---

Definitions:

Par Value

A nominal value assigned to share of stock by the corporation's charter, used primarily for legal purposes.

Paid-In Capital

Funds contributed by shareholders in exchange for shares of stock, representing a source of equity financing for a company.

Preferred Stock

Preferred stock is a type of stock that grants holders specific privileges over common stockholders, typically including priority in dividend payments and asset liquidation.

Stockholders' Equity

Represents the owners' residual interest in the assets of a corporation after deducting liabilities, often detailed in the equity section of the balance sheet.