26-30

As soon as a corporation is authorized to issue stock, an accounting journal entry should be made recording the total value of the shares authorized.

True

False

Restricted retained earnings are available for preferred stock dividends but unavailable for common stock dividends.

True

False

Preferred shareholders are first in line for dividends, and they are also guaranteed dividends when declared.

True

False

During the month, a company sells goods for a total of $108,000, which includes sales taxes of $8,000; therefore, the company should recognize $100,000 in Sales Revenues and $8,000 in Sales Tax Expense.

True

False

The first item that is documented on the indirect method of the statement of cash flows is:

		Operating activities
		Net income or net loss
		Financing activities
		Investing activities