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

13.Nexis Corp. issues 930 shares of $8 par value common stock at $18 per share. When the transaction is recorded, credits are made to

a.Common Stock, $9,300 and Paid-In Capital in Excess of Stated Value, $7,440.

b.Common Stock, $16,740.

c.Common Stock, $9,300 and Retained Earnings, $7,440.

d.Common Stock, $7,440, and Paid-In Capital in Excess of ParCommon Stock, $9,300.