Chapter 11 Questions Flashcards
1
Q
A corporation issues bond certificates to its owners. True or False?
A
False
2
Q
Is government regulation an advantage or disadvantage for a corporation?
A
Disadvantage
3
Q
___________ stock refers to issued stock that is currently held by stockholders.
A
Outstanding
4
Q
If the dividend rate on preferred stock is lower than the rate the corporation earns on its assets, the effect of issuing preferred stock is to…
A
increase the rate earned by common shareholders
5
Q
The statement of stockholders’ equity _____.
A
describes changes in each of the major equity subcategories
