Which of the following statements is false? a)Stockholders have a residual claim

ID: 2448612 • Letter: W

Question

Which of the following statements is false?

a)Stockholders have a residual claim on assets in the event of liquidation.

b)Shares of stock held in the treasury are deducted from the number of issued shares in the determination of the number of outstanding shares.

c)Common stockholders have voting rights at annual stockholder meetings.

d)Corporations are governed by their stockholders.

Which of the following statements regarding earnings per share (EPS) is false?

a)It increases when treasury stock is acquired.

b)It increases when net income increases.

c)It decreases when additional shares of common stock are issued.

d)It decreases when the number of shares of common stock authorized increases.

1. d) Corporations are governed by their stockholders.

2. d) It decreases when the number of shares of common stock authorized increases.

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