Accounting

A stockholder is an owner of more shares of a corporation.
True False

Owners' equity accounts for a corporation normally are listed under a major chart of accounts division titled Capital Stock.
True False

A dividend is an amount earned by a corporation and not yet distributed to stockholders.
True False

A dividends account has a normaldebit balance and is increased by a debit.
True False

A group of persons elected by the stockholders to manage a corporation is called a board of directors.
True False

A board of directors distributes earnings of a corporation to stockholders by declaring a dividend.
True False

A declared dividend is classified as an expense.
True False

The accounts used to record the declaration of a dividend are Dividends Payable and Dividends Expense.
True False

Retained earnings are earnings distributed to stockholders.
True False

When a declared dividend is paid, Dividends Payable is debited.
True False

The purpose of a work sheet is to plan adjustments and summarize the info necessary to prepare financial statements.
True False

The Prepaid Insurance account is adjusted to show the value of insurance that has been used.
True False

During a fiscal period, the amount of merchandise on hand increases and decreases.
True False

Most accounts needing adjustment at the end of a fiscal period have a related temporary account.
True False

The risk of uncollectible accounts should be recorded as an expense in the same accounting period that the revenue is earned.
True False

The account Allowance for Uncollectible Accounts is a contra account.
True False

Many businesses use a percentage of total sales on account to esimate uncollectible accounts expense.
True False

Assets that will be used for a number of years in the operation of a business are called current assets.
True False

Accumulated depreciation is the depreciation expense that has been recorded since the purchase of a plant asset.
True False

Federal income tax is an expenseof a corporation.
True False