Which of the following statements is true of the Common Stock account? A. It is a...

Which of the following statements is true of the Common Stock account?

It is a liability account that has a normal credit balance.

It is a liability account that has a normal debit balance.

It is an equity account that has a normal debit balance.

It is an equity account that has a normal credit balance.

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Expert Solution

The correct option is D.

Common stock is part of stockholders equity in the balance sheet.Common stock represents the total authorised share capital ,total issued share capital etc of the company to the public .The equity consists of various parts such as common stock;preferred stock;retained earnings etc.

jeff jeffy answered 1 year ago

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Which of the following statements is true of the Common Stock​ account? A. It is a...

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