Common stock cannot be converted to preferred stock at the shareholder's discretion.

TRUE/ FALSE

When common stock is issued, the par value, or stated value, of the shares issued is recorded in the Common Stock account.

TRUE/ FALSE

Organization costs are often expensed when incurred.

TRUE/ FALSE

The entry to record a subscription for 100 shares of common stock at par value would not consist of a debit to Subscriptions ReceivableCommon and a credit to Common Stock.

TRUE/ FALSE

When shares of a corporation's stock are transferred from one investor to another, an entry is recorded in the capital stock transfer journal.

TRUE/ FALSE

The entry to record the payment of a cash dividend includes a debit to Retained Earnings and a credit to Cash.

TRUE/ FALSE

Contributed capital does not represents the cumulative profits and losses of the corporation less dividends declared and distributed.

TRUE/ FALSE

The entry to record the declaration of a stock split does not includes a debit to Retained Earnings.

TRUE/ FALSE

Property that is received as a gift should be recorded in the corporation's records at the asset's fair market value.

TRUE / FALSE

Double taxation is one disadvantage of a corporation is

TRUE/ FALSE

Entities formed as corporations but are treated essentially as a partnership so the corporation pays no income tax are Subchapter S corporations

TRUE /FALSE

The issuing corporation may retain the right to repurchase shares of preferred stock from the stockholders at a specific price.

TRUE/ FALSE

The Subscriptions Receivable account is not shown in the Stockholders' Equity section of the balance sheet

TRUE/ FALSE

Retained earnings do not represents a cash fund.

TRUE/ FALSE

If the corporation's income tax computed at the end of the year is less than the total of quarterly deposits, the necessary adjustment will result in a debit to Income Tax Refund Receivable.

TRUE/ FALSE

The worksheet for a corporation and a sole proprietorship are almost identical. The major difference is the income tax adjustment?

TRUE/ FALSE

The entry to record the declaration of a cash dividend consists of a debit to Retained Earnings and a credit to Dividends Payable.

TRUE/ FALSE

When retained earnings are appropriated, cash is set aside for a specific purpose. Does not happen

TRUE /FALSE