Question Details

Retained earnings are subtracted from paid-in capital 


True or False:

1. When a corporation has only one class of capital stock, it is identified as preferred stock.
2. Retained earnings are a part of stockholders' equity.
3. Retained earnings are subtracted from paid-in capital to arrive at total stockholders'
equity.
4. Stock can be issued only in exchange for cash.
5. The par value of stock issued for noncash assets is never a factor in determining the cost
of the assets received.



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