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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is a feature of common stock in a corporation?

Convertible into bonds at the holder's option

Voting rights in the election of the board of directors

Guaranteed fixed dividends

Priority over creditors in liquidation

Previous problemNext problem

Verified step by step guidance

Understand the nature of common stock: Common stock represents ownership in a corporation and typically comes with certain rights and features. It is important to distinguish these features from those of other securities like preferred stock or bonds.

Analyze the feature 'Convertible into bonds at the holder's option': Common stock is not typically convertible into bonds. This feature is more commonly associated with convertible preferred stock or convertible bonds.

Evaluate the feature 'Voting rights in the election of the board of directors': Common stockholders generally have voting rights, which allow them to participate in decisions such as electing the board of directors. This is a key feature of common stock.

Consider the feature 'Guaranteed fixed dividends': Common stock does not guarantee fixed dividends. Dividends are typically variable and depend on the corporation's profitability and board decisions. Fixed dividends are a feature of preferred stock.

Assess the feature 'Priority over creditors in liquidation': Common stockholders are last in line during liquidation, receiving residual assets only after creditors and preferred stockholders have been paid. This is not a feature of common stock.