What is meant by the limited liability of corporate shareholders?
What will be an ideal response?
One of the most important features of a corporation is that its shareholders are not responsible for the corporation's debts and obligations. Generally, the shareholders have only limited liability. This limited liability means that shareholders are liable only to the extent of their capital contributions to the corporation; that is, they can lose their investment in the corporation. However, shareholders do not have personal liability for the corporation's debts and obligations.
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On December 31, 2016, the Wagner Company had the following liabilities: Trade accounts payable $150,000 11% note payable, maturing in equal installments of $40,000 on December 30 of each year through 2019 120,000 12% note payable, issued October 15, 2016, maturing February 15, 2017 70,000 On December 31, Wagner signed a binding agreement with its bank to refinance the 12% note through February
14, 2019, at a variable interest rate. What is the amount of Wagner's current liabilities on December 31, 2016? A) $150,000 B) $190,000 C) $230,000 D) $260,000
The mandatory disclosure provision of the Securities Exchange Act of 1934 requires periodic disclosures from issuers of securities.
Answer the following statement true (T) or false (F)
________ segmentation is often the most difficult to use because it is not only expensive but also time-consuming.
Fill in the blank(s) with the appropriate word(s).
Which of the following is true about accounting?
a. Accounting has become increasingly standardized. b. Accounting is a dead discipline; the rules won’t likely change soon. c. Accounting practitioners have no set rules for how to apply accounting. d. FASB consists of 42 board members. e. Use of accounting software is declining.