I.Multiple Choice1. A major disadvantage of a corporation is...a. Additional taxesb. Limited liability of stockholdersc. Separate legal existenced. Transferable ownership rights2. The stockholders' equity equals.….a. Capital stock + Additional paid-in capital – Retained Earningsb. Common stock + Retained Earningsc. Paid-in Capital + Capital stock + Retained Earningsd. Total paid-in capital + Retained Earnings3. XYZ Corporation issued 1,000 shares of $6 par value stock for a drilling machine.The stock market price was $9 per share. The drilling machine was advertised forsale at $10,500. The drilling machine should be recorded at...a. $6,000c. $9,000b. $4,000d. $10,500

Answered: I. Multiple Choice 1. A major…

I. Multiple Choice 1. A major disadvantage of a corporation is... a. Additional taxes b. Limited liability of stockholders c. Separate legal existence d. Transferable ownership rights

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

I.
Multiple Choice
1. A major disadvantage of a corporation is...
a. Additional taxes
b. Limited liability of stockholders
c. Separate legal existence
d. Transferable ownership rights
2. The stockholders' equity equals.….
a. Capital stock + Additional paid-in capital – Retained Earnings
b. Common stock + Retained Earnings
c. Paid-in Capital + Capital stock + Retained Earnings
d. Total paid-in capital + Retained Earnings
3. XYZ Corporation issued 1,000 shares of $6 par value stock for a drilling machine.
The stock market price was $9 per share. The drilling machine was advertised for
sale at $10,500. The drilling machine should be recorded at...
a. $6,000
c. $9,000
b. $4,000
d. $10,500

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