1) Off-balance sheet financing implies that:

A. leases would be capitalized.

B. leases would not be capitalized in financial statements.

C. leases would be amortized in a separate account not in the lessee's balance sheet.

D. leases show up in the income statement, but not the balance sheet.

2) After the payment of a 25% stock dividend, an investor has 500 shares of stock and $400. What did the investor have prior to the stock dividend?

A. 300 shares of stock

B. 400 shares of stock and $400

C. 400 shares of stock

D. 625 shares of stock and $400

3) The TELE Co. has set a record date of Friday, July 22 for its rights offering. What is the ex-rights date?

A. Monday, July 18

B. Tuesday, July 19

C. Wednesday, July 20

D. Friday, July 22

E. Monday, July 25