1) Which of the following financial statements is prepared to show the changes in the common equity accounts between balance sheet dates?

a.Balance sheet

b.Income statement

c.Statement of retained earnings

d.Statement of cash flows

e.Proxy statement

2) Which of the following are the correct classifications of informational efficiency?

a.Weak-form, semistrong-form, and strong-form

b.Past-form, present-form, and future-form

c.Normal-form, and abnormal-form

d.Primary-form, and secondary-form

e.Physical-form, and over-the counter-form

3) A protective feature on a preferred stock that requires preferred dividends previously not paid to be disbursed before any common stock dividends can be paid is called _____.

a.par value

b.voting rights

c.cumulative dividends

d.sinking fund

e.preemptive right

4) _____ is the tendency of prices to increase over time.

a.Maturity

b.Recession

c.Inflation

d.Risk

e.Liquidity

5) Identify the various types of efficiencies that market efficiency refers to.

a.Economic efficiency and trading efficiency

b.Transactional efficiency and economic efficiency

c.Transactional efficiency and informational efficiency

d.Transactional efficiency and trading efficiency

e.Economic efficiency and informational efficiency