Because ______ Corporations Have a More Restricted Range of Powers

question 17

Multiple Choice

Because ______ corporations have a more restricted range of powers than business corporations, actions not authorized by their corporate charters are more likely to be found ______.

• A) nonprofit, ultra vires.
• B) subchapter S, illegal.
• C) a benefit, ultra vires
• D) professional, illegal.

Understand the accounting process and journal entry preparation for stock dividends and stock splits.

Calculate and prepare journal entries for cash dividends, stock dividends, and treasury stock transactions.

Comprehend the effects of corporate transactions and events on stockholders' equity, including stock issuance, dividends, and stock splits.

Prepare a retained earnings statement, incorporating various adjustments and transactions.

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Definitions:

Minimum Lease Payments

The lowest total amount that a lessee is expected to pay over the lease term under a lease agreement.

Executory Costs

Expenses associated with executing a contract, including maintenance and insurance, but excluding depreciation.

Guarantee

A formal promise or assurance, typically in writing, that certain conditions will be fulfilled, especially regarding the quality, durability, or performance of a product or service.

Failure to Renew

The situation occurring when a contract, such as a lease or licensing agreement, is not extended or renewed upon its expiration.