1. When no par ordinary shares without a stated value is issued for cash, the Ordinary NAME: SECTION: SCORE: PROFESSOR: True or False Shares account is credited for an amount equal to the cash proceeds, 2. The sale of shares in a corporation by one shareholder to another affects the total capital of the corporation 3. When ordinary shares are sold for a price higher than par value, the ordinary shares account is credited only for the par value of the shares sold. 4. In reference to the previous question, any amount received in excess of the par value of the ordinary shares sold is recorded as a credit to the retained earnings account 5. When ordinary shares with a par value are sold for a price that exceeds par value, the Ordinary Shares atcount is credited only for the par value of the shares cold. 6. Ordinary shares may be issued at a price lower than its par value. 7. When treasury stock is sold at a price below its cost, the entry to record the sale has the effect of reducing total shareholders' equity. 8. Treasury stock usually is recorded at par value when purchased 9. When ordinary shares with par value are sold, the proceeds should be credited to the ordinary shares account to the extent of the par value of the shares. 10. Preference share is considered the residual equity of a corporation 11. The number of authorized shares should always equal or exceed the number of outstanding shares. 12. Treasury stocks are part of the outstanding share capital of a corporation 13. Assets received from shareholders as donations should be recorded at the fait market value of the items received, with the credit going to share premium 14. The death of a shareholder results in the dissolution of the corporation 15. Corporations are subject to less government control and regulation than are other forms of business, 6-26 | WIN Bollada's Partnership and Corporation Accounting