1. In the absence of restrictive provisions each share of common stock carries a number of inherent rights. Which of the following is not a right typically afforded to common shareholders? a. the right to share proportionately in the election of directors. b. the right to share proportionately in profits and losses. c. the right to share proportionately in corporate assets upon liquidation. d. the right to share proportionately in the selection of management. e. all of the above are rights typically afforded common shareholders. 2. The most common features of preferred stock are: a. b. Participating no yes Voting Cumulative no yes no yes yes no yes yes none of the above. Convertible no no yes no c. d. no no e. 3. If stock is issued in exchange for property (a non-monetary transaction) GAAP requires that the transaction be valued: a. at the fair value of the stock or the fair value of the property received, whichever is less. b. at the fair value of the stock or the par value of the stock, whichever is greater. C. at the fair value of the stock or the par value of the stock, whichever is less. d. at the fair value of the stock or the fair value of the property received, whichever is greater. e. none of the above. 4. What effect does the issuance of a 2-for-1 stock split have on each of the following? a. b. Retained Earnings No effect No effect No effect Decrease none of the above Total Stockholders' Equity No effect No effect Increase No effect Par Value per Share Decrease No effect Increase Decrease c. d. e. 5. Select the answer below which correctly indicates how preferred stock would be classified on the balance sheet. a. b. Preferred Stock Convertible into Common Stock Equity - Contributed Capital Equity - Contributed Capital Equity - Contributed Capital Equity - Earned Capital none of the above Preferred Stock with a Fixed Redemption Date Participating Preferred Stock Equity - Contributed Capital Equity - Earned Capital Liability Equity - Earned Capital Liability Equity - Contributed Capital Equity - Contributed Capital Equity - Contributed Capital C. d. e