MANAGERIAL ACOUNTNG ACCOUNTING FOR CORPORATIONS SESSION 1 1) Which of the following is not a characteristic of the corporate form of business? A) Ease of capital accumulation B) Stockholder responsibility for corporate debts C) Ease in transferability of ownership rights D) Double taxation 2) Why is a corporation said to be taxed twice? 3) A company issues 7,000 shares of its $10 par value common stock in to record xchange for equipment valued at $105,000. The entry this transaction includes a credit to: in Excess of Par Value, Common Stock, for $ A) Paid-In Capital B) Retained Earnings for $35,000 C) Common Stock, $10 Par Value, for $105,000 D) Cash for $105,000 4) What is a premium on stock issuance? 5) What type of an account is the Common Dividend Payable account? 6) What three crucial dates are involved in the process of paying a cash dividend? 7) When does a dividend become a company's legal obligation? 8) How does a stock dividend impact assets and retained earnings? 9) What distinguishes a large stock dividend from a small stock dividend? 10) In what ways does preferred stock often have priority over common stock