1. Another name for paid-in capital in excess of par is additional common stock.

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True

False

2.

Net income increases stockholders' equity while net loss decreases stockholders' equity.

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True

False

3.

If a corporation pays taxes on its income, then the stockholders will not have to pay taxes on the dividends received from that corporation.

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True

False

4.

The purchase of treasury stock by a corporation increases total assets and stockholders' equity.

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True

False

5. Stockholders have limited liability, since there is no personal obligation of a stockholder for the corporation's debts.

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True

False

6. The net of foreign-currency transaction gains and losses will appear on the balance sheet.

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True

False

7. It is NOT the independent auditor's responsibility to determine whether the company's financial statements comply with GAAP.

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True

False

8. Extraordinary gains and losses are shown "net of tax" on the income statement.

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True

False

9. The revenue recognition principle requires that sales revenues be recognized when they are earned.

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True

False

10. A stockholder has the right to vote in the election of the board of directors.

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True

False