Table of contents

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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

Stockholders of a corporation directly elect which of the following?

The board of directors

The chief financial officer (CFO)

The chief executive officer (CEO)

The audit committee

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Verified step by step guidance

Understand the role of stockholders in a corporation: Stockholders are the owners of the corporation and have certain rights, including voting on key matters.

Recognize the purpose of the board of directors: The board of directors is responsible for overseeing the management of the corporation and making major decisions on behalf of the stockholders.

Identify the election process: Stockholders directly vote to elect members of the board of directors during annual meetings or special voting sessions.

Clarify the roles of the CFO, CEO, and audit committee: These positions are typically appointed by the board of directors and are not directly elected by stockholders.

Conclude that stockholders directly elect the board of directors, as it is their primary mechanism for influencing corporate governance.