Please fill in the blanks.

6. ___ _________ may be declared and paid in cash or stock.

7. Net income kept in the business and not paid in dividends goes into the

______________________________ account on the balance sheet.

8. In preparing a statement of cash flows, an increase in the Common Stock and Treasury

Stock accounts during a period would be a ___________________ activity.

9. A sign of distress a company may experience before bankruptcy is _________.

Please mark T for true or F for false in space next to each statement.

10. ____ A $20,000, 8%, 9-month note payable requires an interest payment of $1,200 at

maturity.

11. ____ The par value of common stock must always be equal to its market value on the date

the stock is issued.

12. ____ Paid-in capital is the amount paid in to the corporation by stockholders in exchange

for shares of ownership.