Equity claims that represent ownership of the net assets and income are called
A)bonds.
B)debtors' equity.
C)stocks.
D)repurchase agreements.

Question

Quizplus · Accepted Answer

Stocks represent ownership in a corporation, giving the holder a claim on the net assets and income of the company. Bonds represent debt and do not provide ownership. Debtors' equity is not a commonly used term in accounting and may refer to a specific type of equity for companies with high levels of debt. Repurchase agreements also do not relate to ownership claims.

Equity Claims That Represent Ownership of the Net Assets and Income