Decide whether each of the following statements is true or false.
a The policymaking body in a corporation is called the board of directors.
The owner of shares of preferred stock has greater voting rights than the owner of shares
b of common stock.
c Parvalue stock is worth more than nopar value stock.
d Issuing shares of $ parvalue stock at $ increases contributed capital by $
Data table
Stockholders' Equity
Amount
Capital stock:
Class A common stock, voting, $ par value, authorized,
issued, and outstanding shares
Class B common stock, nonvoting, no par value, authorized,
issued, and outstanding shares
issued, and outstanding shares
Requirements
a Record the issuance of the Class A common stock for cash. Use Mountain's
account titles.
b Record the issuance of the Class B common stock for cash. Use Mountain's
account titles.
c How much of Mountain's stockholders' equity was contributed by
the stockholders? How much was provided by profitable operations? Does
this division of equity suggest that the company has been successful? Why
or why not?
d Write a sentence to describe what Mountain's stockholders' equity means.
