21. The declaration of a cash dividend causes stockholders' equity to decrease but has no immediate effect upon corporate assets.
22. If capital stock is issued by a corporation at a price lower than par value, the difference represents a loss in the period in which the shares of stock are issued.
23. When par value capital stock is issued, capital stock is credited with the par value of the shares issued, regardless of whether the issuance price is equal to par, more than par, or less than par.
24. Preferred stockholders are owners of the corporation and have rights upon liquidation and to receive dividends.
25. Paid-in-capital includes donated capital.
26. In the event of the liquidation of a corporation, treasury stock ordinarily has preference as to liabilities and preferred stock has preference as to assets.
27. Preferred stockholders generally do not have the same voting rights as do common stockholders in a corporation.
28. Dividends declared and paid to both common and preferred stockholders increase retained earnings.
29. When assets are donated to a corporation, a revenue account should be credited for the fair market value of the assets received.
30. A corporation must always have more than one class of stock.