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vaieri [72.5K]
3 years ago
11

Identify each statement as true or false. If false, indicate how to correct the statement.

Business
1 answer:
bekas [8.4K]3 years ago
3 0

Answer:

1. True: Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.

2. False: Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation. False because limited liability of Stockholders is considered as an advantage.

3. False: When a corporation is formed, organization costs are recorded as an asset. It is false because organization costs are recorded as expenses.

4. True: Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.

5. False: The number of issued shares is always greater than or equal to the number of authorized shares. It is false because the number of issued shares is always less than or equal to the number of authorized shares.

6. False: A journal entry is required for the authorization of capital stock. It is false because journal entry is not required for the authorization of capital stock but for issuance.

7. False: Publicly held corporations usually issue stock directly to investors. It is false because publicly held corporations issue stock indirectly to investors via investment banking institutions while privately held corporations issues stock directly.

8. True: The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.

9. False: The market price of common stock is usually the same as its par value. It is false because there isn't any relationship between market value of common stock and its par value.

10. False: Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock. False because retained earnings refer to the total amount of net income held by a corporation for its future use.

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Navajo woven rugs and blankets called Diyogí
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3 years ago
What is the future value of 25 periodic payments of $5,440 each made at the beginning of each period and compounded at 8%? (Roun
artcher [175]

Answer:

Explanation:

We would plug the following values in a financial calculator in order to compute the future value,

N = 25

I/Y = = r = 8

PMT = 5440

PV = 0

Fv = ??

FV =  PMT x (1 + r )(  \frac{(1+r)^{N} -1}{r} )

https://www.calculator.net/finance-calculator.html?ctype=endamount&ctargetamountv=1000000&cyearsv=25&cstartingprinciplev=0&cinterestratev=8&ccontributeamountv=5440&ciadditionat1=beginning&printit=0&x=0&y=0

^ Using the financial calculator, FV = $429,512

4 0
3 years ago
Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which of
miss Akunina [59]

Answer:

19.05%

Explanation:

the approximate yield to maturity (YTM) formula is:

approximate YTM = {C + [(FV - PV) / n]} /  [(FV + PV) / 2]

  • C = coupon payment = $130
  • FV = face value or value at maturity = $1,000
  • PV = present value or current market value = $690
  • n = 10 years

approximate YTM = {$130 + [($1,000 - $690) / 10]} /  [($1,000 + $690) / 2] = ($130 + $31) / $845 = $161 / $845 = 0.1905 or 19.05%

8 0
3 years ago
Identify each statement as true or false.
Fofino [41]

Answer:

true water and the other day and the other

8 0
3 years ago
Tons Beauty LLC uses the double-declining balance method for depreciation on its computers. Which item is not needed to compute
erica [24]

Answer:

Residual or salvage value isn't needed in the calculation of deprecation expense using the double declining method.

Explanation:

Deprecation expense using the double declining method = [2 ×(1/useful life)] × cost of the asset

I hope my answer helps you

8 0
3 years ago
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