80.2K

Verified Solution

Link Copied!

If Acme Corporation has 2,500 shares of 10%, $80 par value preferred stock outstanding on December 31, 2019. On December 31, 2019, the company declared a $75,000 cash dividend. The dividend paid to the common stockholders is $35000 if the preferred stock is non-cumulative, and the company did not pay a dividend in the previous year. O True 0 False Treasury stocks are stocks that are repurchased from the existing shareholders and when a comapny increases its treasury stocks, it is recorded under the Asset section of the balance sheet by debiting the treasury stocks account.* O True O False One of the benefits of raising funds (capital) for a corporation through the issuance of more equity over debt financing (bonds or bank loans) is that it results in an increase in the return on common stockholders' equity. O True O False On April 1, the directors of Acme Corporation declare a $1.00 per share cash dividend on 200.000 shares of $12 par value common stock. The dividend is payable on May 20 to shareholders of record on May 6. The Acme Corporation will record the declaration of the cash dividend on May 6 in their book of accounts. True False A corporation is treated as a separate legal entity; which means; if there is a legal dispute between the corporation and another party, the other party can take legal actions against the corporation rather than the individual shareholders or owners. True O False If you own 500 preferred stocks of a corporation, it gives you the right to vote the company's board of directors and your vote as the preferred stockholder will get more preference over the common stockholder for selecting the board members. O True O False Publicly held Corporations are the government-owned organizations that are registered as a corporation and are run by professionals instead of the shareholders of the company.* True O False The authorization of capital stock does not result in a formal accounting entry, unlike the issuance of capital stock.* O True O False If Acme Corporation has 2,500 shares of 10%, $80 par value preferred stock outstanding on December 31, 2019. On December 31, 2019, the company declared a $75,000 cash dividend. The dividend paid to the preferred stockholders is $40000 if preferred stock is cumulative, and the company did not pay a dividend in the previous year. True O False The board members of a corporation have declared a dividend for the year 2020 in the form of a 3-for-1 stock split. This should result in an increase in the number of outstanding shares by 3 times without changing the overall paid-in capital amount. True O False

Answer & Explanation Solved by verified expert

See Answer