Answered: The term deficit is used to refer to a…

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation? Group of answer choices Retained Earnings Treasury Stock Organizational Expenses Common Stock

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 14MCQ

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

100%

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

Group of answer choices

Retained Earnings

Treasury Stock

Organizational Expenses

Common Stock

Definition Definition Stock repurchased from the stockholders by the company that once issued it. The repurchase of the stock reduces the stockholder's equity balance on the balance sheet. Treasury stocks are an important constituent of stockholder's equity but do not carry any voting rights.

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