The liability of stockholders is normally limited to their investments in the corporation true 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: Which of the following is a false statement concerning corporations? Select one: a. The corporation…

A: Option A is the correct answer.

Q: Which of the following reduces a shareholder's S corporation stock basis?

A: S corporation is the corporation which has been started by the shareholders of the company and it…

Q: Characteristics of a corporation include

A: Shareholders are the owner of the shares issued by the company. They have the power to vote and…

Q: The right of common stockholders to pro corporation by having the first opportunity to buy additi…

A: The person that is having stock of the company care called stockholders. The charter of the…

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: Which of the following characteristics of a corporation limits a stockholders losses to the amount…

A: The stockholders will share loss of corporation.

Q: Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding…

A: Solution: Debt securities acquired by a corporation which are accounted for by recognizing…

Q: corporation,dividend,limited liability,over-the counter market,stock exchange and stock market index

A: In finance we often hear the words corporation, dividends, limited liability etc. These are all…

Q: True or false    Corporations are legal entities separate from their owners and offer the…

A: 1. Corporation's main advantage is that the entity is separate from the owners. Hence the liability…

Q: How does the audit of owners’ equity for a closely held corporationdiffer from that for a publicly…

A: Audit of owners equity for a closely held corporation is different from that of publicly held…

Q: A corporation cannot be held liable for personal indebtedness of a stockholder even if he is its…

A: There are various form of business organization

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: 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: Which of the following is not considered to be an advantage of a corporation?a. Limited liability of…

A: Corporation:   Business concerns which have a separate legal entity; and are owned by shareholders,…

Q: re the reasons for public (listed) companies bankrup

A: Bankruptcy is a legal proceeding that occurs when a person or business is unable to repay their…

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

A: Common stockholders are a group of stockholders who have voting rights and have the voting rights…

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 an advantage of going public

A: Going 'public' means that a privately held company becomes listed after offering an IPO and hence…

Q: Which one of the following is not an ownership right of a stockholder in a corporation? * O To vote…

A: Introduction: Stockholder: One who holds stocks of the corporation called as stockholder of the…

Q: Which characteristic of a corporation limits a stockholder's loss to the amount of his or her…

A: One of the type of legal structure of business operation that declares the business as a separate,…

Q: 4) XYZ Corporation declares and distributes a cash dividend that is a result of current earnings.…

A: Fair Value Method: When an investing entity makes an investment and the investment has both…

Q: True or False? Dividends should be authorized by the shareholders of the corporation.

A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…

Q: Discuss the reason(s) behind the conflict of interest between corporate stockholders and…

A: Corporate Stockholders: A stockholder is the owner of the shares purchased of a company. There are…

Q: In the absence of restrictive provisions, what are the basicrights of stockholders of a corporation?

A:

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: Explain the corporate characteristic termed “no mutual agency” Explain the corporate characteristic…

A: In this question, we will explain three terms : 1) “no mutual agency” 2) limited liability 3)…

Q: against the related share premium b. Charged to an expense account c. Written off directly against…

A: (a) Charged against the related share premium

Q: Interest on debt incurred to acquire shares in a public corporation is only deductible if the shares…

A: If the money is borrowed to purchase shares, the interest expenses will generally be deductible if…

Q: A director must be a shareholder in a corporation. True or False True False

A: Shareholders and directors are two very distinct roles within a limited company. In simple terms,…

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: 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: Which of the following is a characteristic of a corporation?a. No income taxb. Limited liability of…

A: Corporation: It can be defined as a legal organization or an entity that is completely different…

Q: Is there a type of stock preferable over the other? Should a corporation also utilize borrowing if…

A: Equity Stock represents the equity shares of a company. Equity shares are the part of company owned…

Q: Whereas, a decrease of the authorized capital stock will not be approved by the SEC if the effect is…

A: Authorized share capital is the maximum amount of share capital that a company can issue. This limit…

Q: The following are the characteristics of a close corporation, except:  a. Any action by the…

A: Closed corporation refers to the company under which the shares are held through selecting the few…

Q: Under the cost method, when treasury stock is purchased by the corporation, the par value and the…

A: Treasury stocks  are those stocks  reacquired by the company from the previously issued stock to the…

Q: l of the following are true about the issuance of non-voting common stock except a. it has been…

A: Issue of Shares : The company sell its common stock of shares to collect the amount of capital from…

Q: If the client corporation declared a share-split or stock-split, the auditor should determine that…

A: False, If the client corporation declared a share-split or stock-split, the auditor is not required…

Q: What term is used to refer to denote that creditors usually may not go beyond the assets of the…

A: A creditor is an individual or an institution that has extended credit to a particular company. It…

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.…

Q: Generally, once declared, a cash dividend on ordinary shares becomes a liability of the corporation.…

A: Cash dividend is the amount of return paid to the shareholders of the entity from the profits.

Q: 2. represent partial ownership in the corporations that issue them. retained earnings O capital…

A: Companies fulfill the needs of financing from various sources of financing such as equity and debt.…

Q: Which of the following is not an advantage of the corporate form of business? a. limited liability…

A: Corporate is a popular form of business for the large and small industry. These types of business…

Q: which characteristics of a corporation limits a stockholder's loss  to the amount of his or her…

A: Business organisation can take many forms like Sole Proprietorship, Partnership or Corporation.…