The preemptive right allows stockholders the right to vote for directors of the company.

The preemptive right allows stockholders the right to vote for directors of the company.

Answer: false

Common stock is the residual corporate interest that bears the ultimate risks of loss

Common stock is the residual corporate interest that bears the ultimate risks of loss

Answer: true

Earned capital consists of additional paid-in capital and retained earnings.

Earned capital consists of additional paid-in capital and retained earnings.

Answer: false

True no-par stock should be carried in the accounts at issue price without any additional paid-in capital reported.

True no-par stock should be carried in the accounts at issue price without any additional paid-in capital reported.

Answer: true

Companies allocate the proceeds received from a lump-sum sale of securities based on the securities' par values.

Companies allocate the proceeds received from a lump-sum sale of securities based on the securities' par values.

Answer: false

A corporation is incorporated in only one state regardless of the number of states in which it operates.

A corporation is incorporated in only one state regardless of the number of states in which it operates.

Answer: True

Note disclosures for long-term debt generally include all of the following except

Note disclosures for long-term debt generally include all of the following except

a. assets pledged as security.
b. call provisions and conversion privileges.
c. restrictions imposed by the creditor.
d. names of specific creditors.


Answer: names of specific creditors