Accounting chap 10 – Flashcards
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common stockholders usually have all of the following rights except
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to participate in the day to day operations
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Advantages of the corporate form that have led to the growth of this form of business ownership include all of the following except
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low government regulation
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Limited liability
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even in the even of bankruptcy , stockholders in a corporation can lose no more than the amount they invested in the company
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which statement regarding the corporate form of business is correct
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disadvantages are that the business is subject to government regulations and double taxation on its income
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The disadvantages of the corporate form of business include
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Additional taxes
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Issued stock refers to the number of shares
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outstanding plus treasury shares
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Par value
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has a direct relationship to the market value of the common stock
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Pain in capital
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is the amount stockholders have invested in the company
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Retained earnings represent a companys
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net income less dividends since the company first started
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Authorized common stock refers to the total number of shares
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that can be issued
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outstanding common stock refers to the total number of shares
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issued less in treasury stock
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outstanding common stock specifically refers to
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stock in the hands of stockholders
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The Par value of common stock represents
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the legal capital per share of the stock assigned when the corporation was first established
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Preferred stock is called preferred stock because it usually has two preferences over common stock theses preferences relate to
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Dividends and distribution of assets if the corporation is dissolved
