Question

Stock may be described as:_________

a. an ownership interest in the corporation.
b. a debt owed by the government to the shareholder.
c. a debt owed by the corporation to the shareholder.
d. a document describing the ownership of the corporation.

Answer 1

a. an ownership interest in the corporation.

Step-by-step explanation:

Stock refers to the stake of the owners of a corporation in the company.

It is sometimes referred to as shares or owner's equity and the owners of stock are called shareholders.

Stock therefore may be described as an ownership interest in the corporation represented as equity in the financial statement.

Option a is right.