Accounting 3 chapter 10 true/false

Changing the ownership of stock is referred to as a stock certificate

false

Double taxation is a disadvantage of organizing a business as an LLC.

False

The credit to the capital stock account of no-par common stock equals the total cash or other assets received

true

the initial issue of a security on a public exchange is referred to as an IPO

true

The annual report a publicly held corporation submits to the SE is the 10-k

true

Investors demanding a dividend rate higher than that offered by the preferred stock will pay more than the par value.

false

the payment of dividends on preferred stock is guaranteed by the board of directors

false

when par-value or stated-value stock is sold, the credit to the capital stock account always equals the total par of stated value of the stock issued

true

A conversion option adds value to preferred stock and enables the corporation to issue the stock with a lower dividend rate

true

a 100.00 par value convertible preferred stock with a conversion ratio of 20 has a conversion price of 5.00

true