Question 20 Cumulative preferred stock means that dividends accumulate interest during the year. True False Question 21 1 pts Retained earnings represent the earnings of the corporation that have not been distributed as dividends to stockholders. True False Limited liability means that even in the event of bankruptcy, stockholders in a corporation can lose no more than the amount they invested in the company. True False Question 23 1 pts A corporation has lower taxes and less paperwork relative to sole proprietorships and partnerships True False Question 24 Small stock dividends are recorded by debiting Stock Dividends for the par value per share. True False Question 25 Earnings per share is useful in comparing earnings performance across companies. True False Previous