Equity - Multiple Choice is considered to be an advantage of the corporate form of organisation of the following characteristics is considered to be an advantage b. Limited liability of stockholders arket for a. Avoidance of double taxation d. The absence of a perpetual existence c. Low level of regulation daristics, which is not generally regarded as a right of common shareholders I were d. Transferabity of shares 2. Of the following characteristics, which c. Preference in liquidation b. Voting rights Preemptive right cond the issue of 1,000 shares of $1 par valve common stock, which is wed sa reda 3. The appropriate journal entry to record the se for $4 per share would be: 4,000 4,000 4.000 1.000 3,000 4,000 a. Cash Common Stock b. Cash Common Stock Paid-in Capital in Excess of Par Cash Common Stock Retained Earnings d. Cash Paid-in Capital in Excess of Par Common Stock 1,000 3,000 1,000 3,000 4,000 4. 1.000 shares of $10 par value common stock are issued in exchange for land with a fair market value $25.000, the land and common stock (along with any additional paid-in capital) should be recorded at: d. $25,000 c. $10,000 b. $1,000 a. $0 5. Jackson Corporation has 500,000 shares of common stock outstanding. On April 10, the board of directors declared 50.60 per share cash dividend, to be paid to stockholders of record on April 25. The dividend was distributed on June 6. The proper journal entry to record on June 6 is: 300,000 300,000 300,000 300,000 a. Dividends Expense Cash b. Dividends Payable Cash c. Retained Earnings Cash d. Dividends Payable Retained Earnings 300,000 300,000 300,000 300,000 6. Dividends omitted on preferred shares that must be paid before common shareholders are entitled to be paid a referred to as: b. Callable d. In arrears c. Cumulative a. Participating