11.A corporation can issue more shares than it is authorized in its charter, if the board of directors approves of an increase in the number of authorized shares.
12.The market value of a corporation's stock is determined by the number of shares that the corporation has been authorized to issue.
13.Each stockholder in a corporation has a separate capital account in the stockholders' equity section of the balance sheet.
14.The stockholders' equity section of a corporation's balance sheet consists of (1) paid-in capital, (2) retained earnings, and (3) drawings.
15.Dividends are declared out of retained earnings.
16.When a corporation has only one class of capital stock, it is identified as preferred stock.
17.Retained earnings are a part of stockholders' equity.
18.Retained earnings is usually subtracted from paid-in capital to arrive at total stockholders' equity.
19.Stock can be issued only in exchange for cash.
20.The par value of stock issued for noncash assets is never a factor in determining the cost of the assets received.