ACCOUNTING 211 Liberty University -Accounting 211 Final Exam Koss verified to pass

Accounting 211 Final Exam Koss Advantages of Corporations - correct answer Separate Legal Entity Limited Liability of Stockholder Unlimited Life Ease of Capital Accumulation Disadvantages of Corporations - correct answer Corporate Taxation Government Regulation Authorized Stock - correct answer # of shares a company's charter allows it to sell (Usually exceeds issued stock) Issued Stock - correct answer Sells stock directly (advertising) or indirectly (through a brokerage house, aka: investment banker) Outstanding Stock - correct answer Issued stock held by stockholders Stock: Par Value/Paid in Excess - correct answer Par Value: Arbitrary amount; assigned when authorized Common Stock - correct answer Vote/Abillty Preferred Stock - correct answer Pay dividends, usually no vote Cumulative v. Noncumulative Treasury Stock, - correct answer Stock company bought for themselves *Contra account