Treasury stock is classified as: A. An asset account B. A contra asset account C. A contra equity account D. A liability account Prior period adjustments are reported in the: A. Multiple-step income statement B. Balance sheet C. Statement of retained earnings D. Statement of cash flows Changes in accounting estimates are: A. Considered accounting errors B. Accounted for with a cumulative "catch-up" adjustment C. Extraordinary items D. Accounted for in current and future periods The Discount on Bonds Payable account is: A. A liability B. A contra liability C. An expense D. A contra equity Based on what you know about stocks, what is the best type of stock to have? (Using the following characteristics: Preferred vs. Common, Participating vs. Nonparticipating, Cumulative vs. Noncumulative, and Convertible vs. not Convertible, Callable vs. Non-callable). Write your answer. The type of business organization that is a separate legal entity and as such, has the same duties, rights and responsibilities as a person is a ____________________________.