Question
11. Which of the following is not a characteristic of a corporation? a.Cash dividends paid by a corporation are deductible as expenses by the corporation.
11.
Which of the following is not a characteristic of a corporation?
a.Cash dividends paid by a corporation are deductible as expenses by the corporation.
b.A corporation can own property in its name.
c.Corporations are required to file federal income tax returns.
d.The financial loss that a stockholder may suffer from owning stock in a public company is limited.
12.
The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to
a.increase total expenses and total liabilities
b.decrease total assets and stockholders' equity
c.increase total assets and stockholders' equity
d.decrease total liabilities and stockholders' equity
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