1.

Callable preferred shares

	a. may be redeemed at any time at the shareholder's option.
	b. may be called or redeemed at the option of the issuing corporation.
	c. have rights to participate in any new share issuance to prevent dilution of ownership.
	d. must be classified as a liability.

2. According to the new Conceptual Framework, which of the following is NOT an essential characteristic of a liability?

	a. There is certainty about the amount of future outflows.
	b. It represents an economic burden or obligation.
	c. It exists in the present time.
	d. The obligation is enforceable on the obligor entity.

3. One of the differences between IFRS and ASPE concerning components of compound instruments is

	a. IFRS can elect to measuring the equity component at zero.
	b. IFRS may use the residual method to allocate the debt and equity components, measuring the most easily measurable component first.
	c. ASPE can elect to measuring the equity component at zero.
	d. Where induced early conversions occur, under IFRS the gains/losses are split between income and equity.