Instructions: Indicate whether each of the following statements is true or false. 1. The corporation is an entity separate and distinct from its owners. 2. The two common ways to classify corporations are by purpose and by ownership. 3. It is relatively easy for a corporation to obtain capital through the issuance of stock. 4. The by-laws indicates the amount of stock that a corporation is authorized to sell. 5. When a corporation has only one class of stock, it is called preferred stock. 6. No-par value stock is fairly common today. 7. The issuance of common stock to the investors is the sole responsibility of the investment banking firm. 8. The authorization of capital stock does not result in a formal accounting entry. 9. Net income is recorded in Retained Earnings by a closing entry that debits Income Summary and credits Retained Earnings. 10. Treasury stock is a corporation's own stock that it has issued and subsequently reacquired from shareholders but not retired. .