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11 the par value of a stock is the minimum amount of capital of the corporation exis 4295538

 

 

11.The par value of a stock is the minimum amount of capital of the corporation existing for the protection of creditors. 
 
 

 

 

 

12.When a corporation issues capital stock, most state laws require the corporation to credit Retained Earnings for the par value of shares of stock issued. 
 
 

 

 

 

13.The additional paid-in capital account represents profit to the corporation and, as such, it is credited to Retained Earnings. 
 
 

 

 

 

14.When no-par stock is issued, the entire proceeds are credited to Capital Stock and this amount is viewed as legal capital not subject to withdrawal. 
 
 

 

 

 

15.If capital stock is issued by a corporation at a price lower than par value, the difference represents a loss in the period in which the shares of stock are issued. 
 
 

 

 

 

16.When par value capital stock is issued, capital stock is credited with the par value of the shares issued, regardless of whether the issuance price is equal to par, more than par, or less than par. 
 
 

 

 

 

17.An underwriter is a bank or trust company that maintains a corporation's stockholder records. 
 
 

 

 

 

18.Authorization of a stock issue creates an asset on the books of the issuing corporation. 
 
 

 

 

 

19.Preferred stockholders generally do not have the same voting rights as do common stockholders in a corporation. 
 
 

 

 

 

20.When a corporation fails to pay a dividend one year on its common stock, it is said to be “in arrears.” 
 
 

 

 

 

 

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