chapter12b

chapter12b - Chapter 12b 1. A privately held corporation...

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Chapter 12b 1. A privately held corporation usually has only a few stockholders, and does not offer its stock for sale to the general public. A. True B. Fals e 2. Advantages of a corporation compared to a proprietorship include limited liability of stockholders and lower taxes. A. True B. Fals e 3. The stockholders' equity section of a corporation's balance sheet consists of only common stock and retained earnings. A. True B. Fals e 4. When no-par stock does not have a stated value, the corporation credits the entire proceeds to Common Stock. A. True B. Fals e 5. Treasury stock is a corporation's own stock that has been issued and reacquired by the corporation but not retired. A. True B. Fals e 6. When the selling price of treasury stock is greater then its cost, the company credits the difference to Gain on Disposal of Treasury Stock.
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A. True B. Fals e 7. Preferred stockholders have a priority as to earnings (dividends) but not to assets in the event of liquidation. A. True B. Fals e 8. Common stockholders have the right to share in the distribution of corporate income before preferred stockholders. A.
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chapter12b - Chapter 12b 1. A privately held corporation...

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