Matrix Material Corporation in New Jersey Sells Fifty Tons of Fabric

question 34

Multiple Choice

Matrix Material Corporation in New Jersey sells fifty tons of fabric to Natural Fit Clothing,Inc.,in Ohio,"F.O.B.New Jersey." Matrix arranges with Outbound Truckline to transport the goods.The cost of the transport will be paid by

• A)Matrix.
• B)Natural Fit.
• C)New Jersey.
• D)Outbound.

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Definitions:

Common Stock

Represents the shares of a company that are owned by its shareholders, which entitle them to vote at shareholder meetings and to receive dividends.

Dividends

Payments made by a corporation to its shareholder members, distributing profits.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the company, reducing the amount of outstanding stock on the open market.

Paid-In Capital

Funds raised by a company through the issuance of common or preferred stock, representing the capital contributed by shareholders in exchange for shares.