Which of the following statements is true with regard to contributed capital?

Question

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Contributed capital refers to the amount of capital that a corporation raises by issuing stock. The shares that are in the hands of the stockholders are said to be outstanding. Preferred stock is not retired; it is a type of stock that has a preference over common stock in terms of dividends and liquidation. It is possible for a corporation to have more than one class of stock outstanding, such as common stock and preferred stock. The outstanding number of shares is the number of shares that have been issued and are held by stockholders, and it may be less than or equal to the authorized number of shares that a corporation can issue.

Which of the Following Statements Is True with Regard to Contributed