Decide whether each of the following statements is true or false.

i$.($Click the icon to view the statements.$)$

Statements

Door Inc., an auto parts manufacturer, has two classes of common shares. Class A shares are entitled to one vote, wh

$($Click the icon to view the shareholders' equity report.$)$

Requirements

a$.$ The policy$-$making body in a corporation is called the board of directors.

b$.$ The owner of $140$ preferred shares has greater voting rights than the owner

of $140$ common shares.

c$.$ Issuance of $1,000$ common shares of $$13$ per share increases share capital

by $$13,000.$

Decide whether each of the following statements is true or false.

a$.$ The policy$-$making body in a corporation is called the board of directors.

The owner of $140$ preferred shares has greater voting rights than the owner of $140$

b$.$ common shares.

Issuance of $1,000$ common shares of $$13$ per share increases share capital by

c$.$ $$13,000.$

A corporation issues its preferred shares in exchange for land and a building with

a combined fair value of $$260,000.$ This transaction increases the corporation's

d$.$ owners' equity by $$260,000$ regardless of the assets' prior book values.

e$.$ Preferred shares are a riskier investment than common shares.

d$.$ A corporation issues its preferred shares in exchange for land and a building

with a combined fair value of $$260,000.$ This transaction increases

the corporation's owners' equity by $$260,000$ regardless of the assets' prior

book values.

e$.$ Preferred shares are a riskier investment than common shares.

$2$d$.$ Write a sentence to describe what Door Inc.$\text{'}$s shareholders' equity balance means.

The total of Door's shareholders' equity indicates that the have a claim to $$$ of the company's

been successful because almost all of its shareholders' equity has come fron

Shareholders' Equity Report