1. Identify 5 major characteristics of a corporation and classify the characteristic as being an advantageous or disadvantage. Explain your answers. 2. Describe how preferred stock is different from common stock. If you were buying stock which type of stock would you purchase? Explain your answer. 3. What are the differences between a service enterprise and a merchandising company? Also list 3 accounts that a merchandising company has that a service company does not have. 4. What are the differences between a single-step and a multiple-step income statement? If you were the accountant for a merchandising company which income statement would you prepare? Explain your answer. USE THE FOLLOWING TERMS TO DO THE MATCHING QUESTIONS: Balance sheet, Accounting, Expenses, Corporation. Net Loss, Dividends, Liabilities, Accounting Equation, Assets, Retained Earnings 1. The process of identifying, recording, and communicating the economic events of a business to interested users of the information. 2. Debts and obligations of a business. 3. Resources owned by a business 4. The amount by which expenses exceed revenues. 5. A business organized as a separate legal entity having ownership divided into transferable shares of stock. 6. The amount of net income kept in the corporation for future use, not distributed to stockholders as dividends. 7. Assets = Liabilities + Stockholders' Equity. 8. Payments of cash from a corporation to its stockholders. 9. The cost of assets consumed or services used in the process of ongoing operations to generate resources. 10. A financial statement that reports the assets, liabilities, and stockholders' equity at a specific date