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True or False: Each 100 shares of a stock gives the owner only 1 vote at any corporate meeting.

Please assist with these questions - True or False

1. Each 100 shares of a stock gives the owner only 1 vote at any corporate meeting. _____

2. The shareholders of a corporation are personally liable for any legal actions taken against the corporation._____

3. Depreciation shown on an income statement is actual cash that the company lost.______

4. The balance sheet equation is Liabilities = Assets + Owner's Equity._____

5. If you own 80% of the stock in a corporation, you can usually win any vote you approve._____

6. The current ratio is an indication of a company's long-term solvency_____

Solution Preview

For your convenience, I have attached a formatted MS Word file containing the text below. Feel free to contact me in the future in the event that additional assistance is required.

True or False

1. Each 100 shares of a stock gives the owner only 1 vote at any corporate meeting. False - Each share of stock gives the owner one (1) vote at any corporate meeting. In this case, 100 shares of stock would give the shareholder 100 votes.

2. The shareholders of a corporation are personally liable for any legal actions taken against the corporation. True - Shareholders in a publically traded corporation are liable for any legal actions taken against the corporation. However, their personal obligation for the debts and liabilities of the corporation only extends to ...

Solution Summary

For your convenience, I have attached a formatted MS Word file containing the answers to true or false questions on the effect of various transactions on balance sheet and income statement balances.

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