Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

12. Stockholders' Equity

Characteristics of a Corporation

Financial Accounting

12. Stockholders' Equity

Characteristics of a Corporation

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Multiple Choice

All of the following are characteristics of common stock except:

Priority claim on assets in liquidation over creditors

Residual claim on assets after liabilities are settled

Right to receive dividends

Right to vote in corporate matters

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Verified step by step guidance

Understand the characteristics of common stock: Common stock represents ownership in a corporation and typically comes with certain rights and privileges.

Review the concept of residual claim: Common stockholders have a residual claim on the company's assets, meaning they are entitled to the remaining assets after all liabilities are settled during liquidation.

Examine the right to receive dividends: Common stockholders may receive dividends, but these are not guaranteed and depend on the company's profitability and dividend policy.

Analyze the right to vote: Common stockholders usually have voting rights, allowing them to participate in corporate decisions, such as electing the board of directors.

Identify the incorrect characteristic: Common stockholders do not have a priority claim on assets in liquidation over creditors. Creditors and preferred stockholders are paid before common stockholders in the event of liquidation.