1. Generally, organization costs shall be expensed as incurred together with Share Issuance Cost.

2. Incorporators are those who compose a corporation, whether as stockholders or shareholders in a stock corporation or as members in a nonstock corporation

3. Any person, partnership, association or corporation, singly or jointly with others but not more than fifteen (15) in number, may organize a corporation for any lawful purpose or purposes, provided, that natural persons who are licensed to practice a profession, and partnerships or associations organized for the share of the capital stock of the corporation. (6a) purpose of practicing a profession, shall not be allowed to organize as a corporation unless otherwise provided under special laws

4. Share Premium is the portion of the authorized share capital that has been subscribed but not yet fully paid

5. Additional Paid In Capital is the portion of the paid-in capital representing amounts paid by shareholders in excess of par

6. When the subscriber fails to settle the subscriptions in full on the date specified in the subscription contract or in the call made by the board of directors, the subscribed shares are declared delinquent

7. Preference shares are shares of stock which have been issued and fully paid for, but subsequently reacquired by the issuing corporation either by purchase, redemption, donation or through other lawful means

8. Retained Earnings account may be debited, but is never credited for treasury share transactions

TRUE OR FALSE? 

 

Answer rating: 100% (QA)

1 False Although these are the expenses they will not treat as general expenses because only expenses for an existing trade or business can be deducte... View the full answer