31) The retained earnings of a corporation is A) internally generated equity that is ea nally generated equity that is earned by profitable operations that is not distributed to stockholders B) externally generated equity that is contributed by shareholders externally generated equity that is acquired from banks and other creditors D) internally generated equity that is received from employee stock purchases 32) Which of the following corporate characteristics is a disadvantage of a corporation? A) Stockholders have limited liability. B) A corporation has a continuous life. C) There is no mutual agency between the stockholders and the corporation D) Earnings of a corporation may be subject to double taxation. 33) Bentley Corporation received cash from issuing 17,000 shares of common stock at paron January 1, 2018. The stock has a par value of $0.05 per share. Which is the correct journal entry to record this transaction? A) Cash is debited for $850, and Common Stock-$0.05 Par Value is credited for $850. B) Cash is credited for $17,000 and Common Stock-$0.05 Par Value is debited for $17,000. C) Paid In Capital in Excess of Par-Common is debited for $16,150, and Common Stock-$0.05 Par Value is credited for $16,150. D) Cash is debited for $17,000, Common Stock-$0.05 Par Value is credited for $850, and Paid- In Capital in Excess of Par-Common credited for $16,150. 34) The purchase of treasury stock A) decreases assets and stockholders' equity B) increases assets and stockholders' equity C) increases assets and decreases stockholders' equity D) decreases assets and increases stockholders' equity 35) Which of the following occurs when a cash dividend is declared? A) Liabilities remain unchanged. B) Stockholders' equity decreases. C) Liabilities decrease. D) Assets increase. 36) Which of the following items are NOT reported as part of income from continuing operations? A) discontinued operations B) gross profit C) other income and (expenses) D) gain on sale of equipment