11.The net increase or decrease in Retained Earnings for a period is recorded by closing entries.
a.True
b.False
12.The balance in Retained Earnings should be interpreted as representing surplus cash left over for dividends.
a.True
b.False
13.A deficit in Retained Earnings is reported in the stockholders' equity section of the balance sheet.
a.True
b.False
14.When no-par common stock with a stated value is issued for cash, the common stock account is credited for anamount equal to the cash proceeds.
a.True
b.False
15.The par value of common stock must always be equal to its market value on the date the stock is issued.
a.True
b.False
16.For accounting purposes, stated value is treated the same way as par value.
a.True
b.False
17.The issuance of common stock affects both paid-in capital and retained earnings.
a.True
b.False
18.The main source of paid-in capital is from issuing stock.
a.True
b.False
19.The number of shares of outstanding stock is equal to the number of shares authorized minus the number of sharesissued.
a.True
b.False
20.The amount of capital paid in by the stockholders of the corporation is called legal capital.
a.True
b.False