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Accounting
Which of the following is true of a corporation? OA. The stockholders of a corporation have
unlimited liabilities for the corporation's debts OB. A corporation can be organized publicly, but
it cannot be organized privately. C. A corporation has a limited life D. Acorporation has to pay
income taxes on its business earnings.
Solution
Kindly reost other parts in different Question.
1d) since every corporation has to pay income taxes on its earnings
2) False. Since common Stockholders are considered owners of the company they are
paid dividend after Preference shareholders
3) b Decrease total equity by 6000(1200*5)
4 c Treasury - common stock would be debited for 11400
5 c 10% (
Net income 21,000.00
Preference dividend 11,600.00
Earning for equity shareholder 9,400.00
Return on common stock (9400/94000) 10%
6 D Treasury Stock
Kindly
reost
other
parts in
different
Question.
Accounting Which of the following is true of a corporation- OA- The st.docx

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