True or False 1. When ordinary shares are sold for a price higher than par value, any amount received in excess of the par value of the ordinary shares sold is recorded as a credit to the retained earnings account.

Q: A company uses its paid-in capital (in addition to retained earnings) to pay dividends. A company…

A:

Q: The net effect to a corporation of the declaration and payment of a cash dividend is to: a. increase…

A: Cash dividend means the dividend paid to the company's stockholders in the form of cash. This can be…

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: All of the following terms can be used for a corporation to describe the difference between assets…

A: The balance sheet represents the financial position of the business with assets, liabilities and…

Q: Which of the following is not considered to be a characteristic of the corporate form of…

A: A corporate is an seperate legal entity with limited liability.

Q: Retained earnings refer to the portion of a corporation's profits that are paid out to shareholders.…

A: B.  false Retained earnings are not paid to shareholders.  Generally dividend paid to shareholders ,…

Q: Which of the following is true of retained earnings? Retained Earnings is decreased by net income.…

A: Retained earnings are the profits that are attributable to equity shareholders accumulated over a…

Q: The total owners' equity is usually under a number of subcaptions on the corporations balance sheet.…

A: Shareholder equity is the section that foremost comes in the liability side of the balance sheet

Q: Distributions by a corporation to its shareholders are presumed to be a dividend unless the parties…

A: A dividend can be defined as the distribution of the cash, stock, or any other product of the…

Q: I. Multiple Choice 1. A major disadvantage of a corporation is... a. Additional taxes b. Limited…

A: Hi Student,  Since there are multiple questions, we will answer only first question. If you want…

Q: Unless stated otherwise in the prospectus, which of the following accrue to holders of common stock?…

A: Meaning of common stock:Common stock represents ownership in a corporation and holders of common…

Q: Which of the following statements are false? (you may choose more than one statement)        A…

A: Option A. is False The issue of ordinary shares will not dilute ownership of the company. Option C.…

Q: 12) After satisfying obligations to creditors, the government, and preferred stockholders, any…

A: The answer is A) common shareholders as cash dividends.Explanation:The answer is A) common…

Q: The date of record is the date: Group of answer choices A)On which the board of directors of a…

A: The date of record is the date on which the company checks its records to identify shareholders of…

Q: The pre-emptive right of common shareholders is defined as the right: a. to receive cash dividends…

A: Common shareholder's are true owner's of the company. These shareholder's is entitled to vote in…

Q: If a company uses the equity method to account for an investment in another company, which of the…

A: The equity method is used when a company has ownership in another company of 20% to 50% of the…

Q: Which of the following is not an account appearing in the equity section of a corporation's…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Shares are equity, but to the firm is a liability for the investor is an asset. What is the shares…

A: Equity is amount that a company has got from its investors and it should be returned to the…

Q: A debenture is ABU D A equity capital of the company another name for share capital a loan…

A: A debenture is a type of debt instrument that represents a loan made by an investor to a company.…

Q: Dividends are (Select all that apply.) required amounts owed to shareholders reported on the Income…

A: The dividend is considered as a part of the distributable profit distributed by the company to its…

Q: What are some reasons that a company might choose common stock as means of financing their business…

A: Common Stock Common stock represents the ownership of a corporation by its stockholders. It allows…