Lorrie Mae T.

Licayan ACC212 (577) 7:30-8:30 PM

3rd year BS in Accounting Technology

Assignment #1
Assignment # 2
Assignment #3

1. True

2. False. If a stockholder cannot attend the meeting, there is so called a proxy voting. A
proxy is a ballot sent by a corporation to stockholders for absentee voting or a
stockholder may opt to send someone on his behalf to vote.

3, False. If a preferred stock is noncumulative, any omitted dividends will not be in

arrears. That is, the corporation does not have to pay any omitted dividends on
noncumulative preferred stock before declaring dividends. However, the noncumulative
preferred stock must be given its current year dividend before the common stock can
receive a dividend.

4. False. This type of stock generally does not have voting rights except if expressly
stated in the by-law of a corporation.

5. False. No, common stockholders will not be liable to any creditor beyond what he had
as his investment.