TRUE / FALSE.
The proceeds from the issue of shares are credited to the share capital account. 2. Shareholders' liability is generally unlimited; therefore, creditors have recourse to shareholders' personal assets as well as corporate assets. 3. Retained earnings are the cumulative net income (loss) that has been retained in a corporation. 4. Authorized shares are the same as issued shares. 5. The cumulative feature of shares applies to preferred shares. 6. Dividends in arrears are shown as a liability on the balance sheet. 7. When shares are issued for noncash assets, the cost of the assets acquired is equal to the fair market value of the shares issued.