Question

1. A common stock gives you the right to

Not pay federal income taxes on your dividends

Vote right on shareholder elections

Call a special meeting of the shareholders

Get a semi-annual coupon payment and the face value of the stock

10. Accounts Receivable are the amounts owed to the firm by customers who have purchased goods or services on credit and are considered a long-term asset.

True

False

Can someone check these for me and please explain if they are wrong? Thank you.

Answer 1

1). Your answer is correct. Because common stock holders have right to vote for the matters that directly affects their company ownership, such as stock split, doing a merger or acquisition, etc. They also have right to vote for election in board of director or operational alteration such as changing the goal or aims of the firm, etc.

2). The statement is False. This is because Accounts receivable are not considered as long-term assets. It is expected that company typical have a credit policy not more than 3 months and customers are expected to pay their due before this time. And as an asset with maturity or duration of less than 1 year are considered as short-term assets, Accounts receivable are short-term asset.