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