7. The current ratio and quick ratio analysis can help creditors evaluate a company's ability to pay its current liabilities. A True. B. False. 8. Which of the following is a characteristic of a corporation? A. A corporation has a limited life. B. A corporation is not taxed on the corporation's business income C. The owners of a corporation have limited liability for the corporation debts. D. All of the above. 9. Shares of stock that has been authorized to be sold to stockholders are call outstanding shares. A. True. B. False. 10. What types of stock can a corporation issue? A. Treasury Stock and a stock dividend. B. Common stock can be issued but not preferred stock. C. Preferred stock can be issued but not common stock D. Both common stock and preferred stock can be issued. 11. The par value of common stock represents A. The market value of common stock. B. An arbitrary value assigned to a share of corporate stock. C. The purchase price of all common stock. D. None of the above. 12. Stated value is an amount assigned to no-par stock by the board of directors. A True B. False. 13. The charter of a corporation provides for the authorization of 100,000 shares of common stock. Assume that 60,000 shares were issued and 10,000 shares were subsequently reacquired. What is the number of shares outstanding? A. 10,000. B. 70,000. C. 60,000 - D. 50,000. 14. Which of the following is true about treasury stock? A. Stock that is reported in the financial statements as an asset. B. Stock that is reported in the financial statements as outstanding. C. Stock that a corporation has issued and then reacquired. D. All of the above