ANSWER THE FOLLOWING

TRUE OR FALSE $16.$ A corporation is a separate entity for legal purposes.

$17.$ The interest or right of the owner in the management of the corporation, in its surplus profits, and upon dissolution, in the balance of its assets after the payment of debts is share of stock,

$18.$ Retained earnings is a fund of cash accumulated from profitable operations of the business.

$19.$ When no$-$par ordinary shares have a stated value, the stated value of the shares issued normally is considered the legal capital of the corporation.

$20.$ The entire consideration received by the corporation for its no$-$par value shares shall be treated as capital and shall not be available for distribution as dividends.

$21.$ A certificate of stock is a written acknowledgment by the corporation of an interest of a shareholder in the corporate property and franchise.

$22.$ When ordinary shares with par value are sold, the proceeds should be credited to the ordinary shares account in full.

$23.$ The liability of a shareholder is usually limited to the shareholder's investment in the corporation.

$24.$ One disadvantage of a corporation is the lack of mutual agency.

$25.$ The entry to record the retirement of treasury stock will include a debit to Ordinary Shares account for the amount of the cost to retire the shares.

$26.$ Treasury shares are shares that are issued but not outstanding.

$27.$ Management engages the corporation's independent auditors.

$28.$ The limited liability of a shareholder can be viewed as both an advantage and a disadvantage.

$29.$ The par value of share refers to its value on the open market.

$30.$ When ordinary shares without par value are sold, the proceeds should be credited to the ordinary shares account.

$31.$ Legal capital is that portion of the contributed capital or the minimum amount of paid$-$in capital, which must remain in the corporation for the protection of corporate creditors.

$32.$ Treasury stock is reported as an asset on the statement of financial position because treasury shares may be sold later.