ACC 304 All Assignments ACC 304 All Assignments | Page 32

Week 10 Quiz 7: Chapter 15
STOCKHOLDERS’ EQUITY
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
1. A corporation is incorporated in only one state regardless of the
number of states in which it operates.
2. The preemptive right allows stockholders the right to vote for
directors of the company.
3. Common stock is the residual corporate interest that bears the
ultimate risks of loss.
4. Earned capital consists of additional paid-in capital and retained
earnings.