up ACCO 112Partial Test llworkshop 7 Il ExerciseComplete the

up ACCO 112-Partial Test ll-workshop 7 Il. Exercise-Complete the following sentences. (30 points) 1. A corporation has a separateGal untiteapart from its owners. 2. Theumulative Diteaure of preferred stock gives the preferred stockholders the right to receive current-year dividends and unpaid prior-year dividends before common stockholders receive any dividends. The paid-in capital section of the balance sheet consists of two classifications: and 3. per share that must be retained in the business Par value of stock represents the for the protection of corporate 4. 5. If stock is issued in exchange for noncash assets, the assets should be valued at the or the assets morket value of the consideration whichever is more clearly evident. 6. A corporation\'s own stock that has been reacquired by the corporation but not canceled is called IV. Exercise - Select the correct answer. (10 points)

Solution

3. The paid in capital section of the balance sheet consists of two classificaton: Capital stock and Additional paid in capital.

4. Par value of the stock represents the Face value per share that must be retained in the business for the protection of corporate creditors/liabilities.

5. If stock is issued in exchange for non cash assets, the assets should be valued at the market value of the consideration in stock or the assets market value whichever is more clearly evident.

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