Fill in blanks and true or false

1.To start a corporation in the U.S., it is necessary to file an application in one of the states. The legal document that the state approves is the ____.

2.One of the advantages of the corporation form of business as opposed to a partnership form is the ease of transferring ____.

3.At a corporation, Assets minus Liabilities is____.

4.Shares of stock that have been issued and have not been reacquired by the issuing corporation are called ____ shares.

5.If a corporation has issued only one type of stock, it is ____ stock.

6.The type of stock that gets its dividend before the common stock gets its dividend is called ____stock.

7.The holders of____ stock elect the corporation's board of directors.

8.The par value of____ stock usually has no economic significance.

9.The dividend on preferred stock is often expressed as a percentage. To calculate the annual dividend on preferred stock, you multiply the percentage times the ____ of the preferred stock.

10.If a corporation issues 10% Preferred Stock $100 Par on a day when the financial markets demand 9%, this corporation's 10% Preferred Stock will sell for ____ than its par value.

11.If a common stock does not have a par value or a stated value, the entire proceeds from issuing the stock is credited to one account entitled ____.

12.Stockholder's equity is subdivided into two major sections: ____ and____. . 13.The net income of a corporation is closed to the ____account.

14.Dividends declared by a corporation reduce the ____ section of stockholders' equity.

15.Dividends appear as an expense on the corporation's income statement.

True or False

16.If the board of directors does not declare the regular quarterly divided on its common stock, the corporation's liabilities will include the omitted dividend.

True or False

17.The ____ date is the date on which the corporation records a liability for its quarterly dividend.

18.The____date determines which stockholders will receive a declared dividend.

19.If a corporation declares a small stock dividend, the account that will be reduced by a debit entry is ____.

20.A stockholder will have the same number of shares after a 3-for-2 stock split or after a ____% stock dividend.

21.A corporation's own shares of stock that have been reacquired from its stockholders but have not been retired are called ____.

22.The account, Treasury Stock, will have either a zero balance or a ____(debit, credit) balance.

23.If a share of treasury stock is sold for more than its cost, the difference is credited to ____.

24.Treasury stock sales can result in a loss on the corporation's income statement.

True or False

25.If preferred stockholders have the opportunity to receive more than the stated dividend percentage, the stock is described as ____ preferred stock.