stock holders are not liable for a corporation's actions or debt true or false

Q: Appropriation of retained earnings is necessary when the corporation reacquires its own share…

A: Acquisition of own share capital means purchase of corporate's own shares from the investors either…

Q: In every corporate liquidation, which type of credits will not share from the free assets of the…

A: Liquidation is the process of taking a business to its end by settling the claims of creditors…

Q: True or False. Answer please. S1 - During liquidation, the transfer of properties by dissolving…

A: Hi student, you have asked multiple questions in one go so as per Bartleby's guidelines we will…

Q: true or false   A corporation may NOT legally invest in the bonds of another corporation

A: A corporation is a form of business organization that is legally formed and has a group of people…

Q: True or False. a corporation is cease to exist when its shareholders sell their stock.

A: Company means the form of business where management is separately from owner and have perpetual…

Q: The liability of stockholders is normally limited to their investments in the corporation true…

A: The stockholders are considered as the owner of the corporation and the liability is limited to…

Q: Corporations disclose restrictions of retained earnings on the balance sheet as a deduction from…

A: Restricted retained earnings refers to that amount of a company's retained earnings that are not…

Q: Which of the following is NOT an advantage of private debt over public debt? A) It is liquid.

A: Private debt investing offers many potential advantages such as higher yields, greater security (and…

Q: The dividend is not a legal liability until the board of directors has declared it.  true or false.…

A: Equity capital are the funds invested by the owners in the company. The equity holders of the owners…

Q: If a company has any debt covenants, those debt covenants need to be considered whenever that…

A: Debt Covenant: Debt covenants are limits that lenders (creditors, debt holders, investors) impose on…

Q: Corporations recognize no gain orloss when it issues stock shares for property even if the…

A: Section 351 states non recognition or not recording of the gain or loss on the property transfers…

Q: The accounting assumption or principle of is being violated if a company that is a party to major…

A: Solution: The accounting assumption or principal of Full disclosure is being violated if a company…

Q: True (t) or False (f) _____ Bond interest paid by a corporation is an expense, whereas dividends…

A: Bonds are the certificates of loan taken by a corporation. It is typically secured in nature. The…

Q: 13) The principle of limited liability means: a) creditors cannot seize corporate assets b) that the…

A: Limited liability is a legal principle that protects a shareholder from being personally liable for…

Q: Which of the following statements regarding constructive dividends is not correct? a. Constructive…

A: It is the tax deduction on dividends received by a corporation from other corporations in which the…

Q: Limited liability is a disadvantage of corporation companys? true or false

A: Limited liability refers to the term that means in case of insolvency of the business, personal…

Q: Which of the following is NOT a characteristic of common stock? O tock represents partial ownership…

A: Common stock forms part of the capital structure of the company. It provides funds for managing…

Q: If the shareholder’s position is not protected by a contract – unlike the provider of debt- how is…

A: The shareholders have ownership of the company. The providers of debt are the creditors of the…

Q: Limited liability refers to an owner's liability for which of the following? I. The amount invested…

A: Under limited liability company the shareholders liability is limited only to the extent of nominal…

Q: An individual provides accounting services to a corporation in exchange for stock. the shareholder…

A: Recognition of revenue - is an important aspect of accounting of revenue to be presented during the…

Q: Which of the following is not primary reason why corporation invest in debt . Select one: a. they…

A: There are several reasons why corporate invest in debts or equity. They mainly includes: They have…

Q: Explain why a duty to prevent insolvent trading is imposed on directors by statute. Provide an…

A: Financial Accounting Financial accounting is the process of recording financial events, summarizing…

Q: A corporation may not deduct dividends paid to shareholders but is permitted to deduct reasonable…

A: Compensation Compensation refers to payment for personal services which includes wages, salaries,…

Q: 21.Retained earnings

A: 21.Retained earnings Answer - All of the above

Q: Which activities changes equity but does not affect a corporation's assets and liabilities?

A: Changes in equity: The amount of equity changes due to increase or decrease in the business…

Q: I. Creditors have voice in management, thru its voting power. II. Shareholders are prioritized…

A: Creditors are given the option to vote in view of a fundamental presumption that they will project…

Q: In corporations the stockholders are equally liable for the debts of the firm.  a. True    b. False

A: As the corporation is a separate entity,  it is liable for the its debt, shareholders are not…

Q: In general, a liquidating corporation recognizes both gains and losses.   Question 14 options:…

A: The liquidating corporation refers to a process by which a business firm comes to end. There are…

Q: In the absence of evidence to the contrary, all the retained earnings of an entity can be declared…

A: Appropriated retained earnings are defined as that part of retained earnings that have been set…

Q: 1. It refers to the capital of a corporation that cannot be withdrawn until final liquidation.  2.…

A: 1. It refers to the capital of a corporation that cannot be withdrawn until final liquidation.…