Which of the following statements is not descriptive of common stock?
A) Stockholders are considered owners,not creditors,of a corporation.
B) The payment of dividends is never required.
C) Dividends paid are an expense for the issuing corporation.
D) Issuing stock is less risky than issuing bonds.

Question

Quizplus · Accepted Answer

Dividends paid on common stock are not considered an expense for the corporation; they are a distribution of profits to shareholders.

Which of the Following Statements Is Not Descriptive of Common