Chapter 9: T/F
If stockholders own noncumulative preferred stock, any passed dividend must be paid in the following year.
False
Organization costs are current assets that are written off as expenses over a period of time.
False
When stock is sold, the capital stock account is credited for the total amount of cash received.
False
A corporation has a legal right to own property and enter into contracts
True
A corporation is a separate legal entity apart from its owners.
True
Common stockholders usually have voting privileges.
True
Corporations are more closely regulated than sole proprietorships and partnerships.
True
Corporations generate more business activity than sole proprietorships and partnerships combined.
True
Cumulative preferred stockholders must be paid their dividends before common stockholders.
True
The Common Stock Subscribed account is a temporary stockholders' equity account that is used when stock is sold on the installment plan.
True
The Paid-in Capital in Excess of Par account is used to record the difference between the total amount received from stockholders and the par value of the stock issued.
True
The directors of a corporation are elected by its stockholders.
True
The stockholders' equity of a corporation consists of capital stock and retained earnings.
True