Exam III - Chapters 8 - 130 Interest on bonds is tax deductible. True or False True False Companies report prior period adjustments, net of any income tax effects in the Statement of cash flows. Balance sheet o o o o of Statement of retained earnings Income statement No disclosure is required ine board of directors or a corporation Multiple Choice O Are elected by the corporate registrar. Are responsible for day-to-day operations of the business O Do not have the power to bind the corporation to contracts, due to lack of mutual agency, May not also be executive officers of the corporation, due to the separate entity principle Are responsible for overseeing corporate activities A class of stock for which there is no minimum legal capital is called: Multiple Choice o Convertible stock. o No-par stock. o Callable stock o Noncumulative stock o Discounted stock A proxy is a document that gives a designated agent the right to vote a shareholder's stock. 15 True or False True True False False