True/False 1. The proceeds from the issue of shares are credited to the share capital account. True False 2. Shareholders' liability is generally unlimited; therefore, creditors have recourse to shareholders' personal assets as well as corporate assets. True False 3. Retained earnings are the cumulative net income (loss) that has been retained in a corporation. True False 4. Authorized shares are the same as issued shares. True False 5. The cumulative feature of shares applies to preferred shares. True False 6. Dividends in arrears are shown as a liability on the balance sheet. True False 7. When shares are issued for noncash assets, the cost of the assets acquired is equal to the fair market value of the shares issued. True False