12. Marvin holds 10% of the common shares of Pink Limited. For the 2019 fiscal year end, all shareholders received a cash payment to represent their share in the net income of Pink Limited. How would this cash payment be reported in Pink Limited's financial statements? a) as a reduction in the Common Shares account b) as an owner withdrawal, reducing Shareholder's Equity of Pink Limited c) as a dividend, reducing Shareholder's Equity of Pink Limited d) This payment would not impact the equity section of the financial statements. e) None of the above. 13. An enterprise's ability to take effective actions to alter the amounts and timing of cash flows so it can respond to unexpected needs and opportunities is called a) financial flexibility. b) liquidity. c) the quick ratio. d) solvency. c) none of the above. 14. On December 1, 2019, Reggae Ltd. sold products that cost $180,000 for $240,000, receiving a note receivable bearing interest at 10 percent. The note will be paid in three annual instalments of S96,510 starting December 31, 2019. Assuming that collection of the note is very uncertain, how much revenue from this sale should Reggae recognize in 2019? a) $0 b) $18,000 c) $24,000 d) $96,510 e) None of the above 15. A product and service are bundled together and sold to customers for $450. The fair values of the product and service are $350 and $150 respectively. Under the relative fair value method, how much would be allocated to the product? a) $150.00 b) $315.00 c) $350.00 d) $300.00 e) None of the above