Acc 231: Exam 3 Question and
answers correctly solved 2025/2026
Common Stock - correct answer ✔The basic form of capital, usually has voting rights and receives
dividends
Paid-in capital - correct answer ✔amounts by which the issue price of stock exceeds its par value
Dividends - correct answer ✔Distributions by a corporation to its stockholders
Legal Capital - correct answer ✔portion of stockholders' equity that cannot be used for dividends
Outstanding stock - correct answer ✔Stock in the hands of stockholders.
Par value - correct answer ✔Arbitrary amount assigned to share of stock
Preferred Stock - correct answer ✔Stock that gives its owners certain advantages over common
stockholders, such as the right to receive dividends before the common stockholders.
Underwriter - correct answer ✔A firm that usually agrees to buy all the stock a company want to issue
the firm cannot sell the stock to its clients.
Treasury Stock - correct answer ✔A corporation's own stock that it has issued and late reacquired.
How to calculate Outstanding Stock - correct answer ✔Outstanding stock = Issued stock - Treasury
Stock
answers correctly solved 2025/2026
Common Stock - correct answer ✔The basic form of capital, usually has voting rights and receives
dividends
Paid-in capital - correct answer ✔amounts by which the issue price of stock exceeds its par value
Dividends - correct answer ✔Distributions by a corporation to its stockholders
Legal Capital - correct answer ✔portion of stockholders' equity that cannot be used for dividends
Outstanding stock - correct answer ✔Stock in the hands of stockholders.
Par value - correct answer ✔Arbitrary amount assigned to share of stock
Preferred Stock - correct answer ✔Stock that gives its owners certain advantages over common
stockholders, such as the right to receive dividends before the common stockholders.
Underwriter - correct answer ✔A firm that usually agrees to buy all the stock a company want to issue
the firm cannot sell the stock to its clients.
Treasury Stock - correct answer ✔A corporation's own stock that it has issued and late reacquired.
How to calculate Outstanding Stock - correct answer ✔Outstanding stock = Issued stock - Treasury
Stock
