ACCOUNTING 211 Liberty University -Accounting 211 Final Exam correctly answered

Accounting 211 Final ExamCorporation advantages - correct answer separate legal entity (takes actions through agents) limited liabilities of stockholders transferable ownership rights continuous life lack of mutual agency (stockholders cannot bind corporation to contracts) ease of capital accumulation corporation disadvantages - correct answer government regulation corporate taxation/double taxation authorized stock - correct answer number of shares that a corporation's charter allows it to sell (usually exceeds number of shares issued and outstanding) issued stock - correct answer sold stock outstanding stock - correct answer issued stock held by stockholders recording stock sales at par: - correct answer debit cash credit common stock at par value