Form 51. Which of the following statements is not descriptive of common stock? a. Stockholders are considered owners, not creditors, of a corporation b The payment of dividends is never required Dividends paid are an expense for the issuing corporation d. Issuing stock is less risky than issuing bonds 52. Which of the following could be described as both an advantage and a disadvantage of incorporation? a. Continuous existence b. Limited liability e. Double taxation d. Lack of mutual agency 53 Par value is established for a share of stock after it is issued. is the legal capital established for a share of stock. represents what a share of stock is worth. represents the original selling price for a share of stock. c. d. 54. A good measure of confidence in a corporation's future is a. par value. b. price/earnings ratio. c. dividends yield. d. return on equity 55. W hich of the following is the apprpriate entry to record the declaration of cash dividends? Dividends Payable - Debit Cash-Credit a. Additional Paid-in Capital - Debit Dividends Payable- Credit b. c. Dividends-Debit Dividends Payable - Credit d. Retained Earnings- Debit Cash - Credit The board of directors of Berweck Corporation declared a cash dividend on January 18, 2010, to be paid on February 18, 2010, to shareholders holding the stock on February 2, 2010. Given these facts, the date February 2, 2010, is referred to as the a. date of declaration. b. date of payment. c. ex-dividend date. 56. d. date of record. 57. Start-up and organization costs