Common Stock is an asset.

Common Stock

Common Stock represents units of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Asset

An economic resource owned or controlled by an individual, corporation, or country, expected to provide future benefits.

Differentiate between assets and stockholders' equity in the context of stock transactions.

Verified Answer

Final Answer :

False

Explanation :

Common stock is considered equity, not an asset, on a company's balance sheet. It represents ownership interest in the company.

Learning Objectives

Differentiate between assets and stockholders' equity in the context of stock transactions.