16 Select Answer: Name a characteristic of preferred stock. A. Only preferred stockholders are allowed to vote for the board of directors. B. Preferred stockholders are required to receive a dividend every year. C. Preferred stockholders receive a fixed dividend amount or percentage. D. If the corporation liquidates, only the common shareholders will receive proceeds. 17 Select Answer: Donna borrowed $400,000 from Bank of America on a 6% 30-year installment loan with monthly payments. How would the payment be determined? A. Multiply $400,000 times the interest factor for 30 years at 6%. B. Multiply $400,000 times the interest factor for 30 years at 1/2%. C. Divide $400,000 by the interest factor for 30 years at 1/2%. D. Divide $400,000 by the interest factor for 30 years at 1%. 181 Select Answer: Which of the following depreciation methods is accelerated? A. Straight line B. Double Declining Balance C. Units of Activity D. All of these are accelerated 19 Select Answer: Which of the following types of business entities is required to pay income tax? A. proprietorship B. partnership C. corporation D. None of these 20 Select Answer: How would you characterize the account Discount on Bonds Payable? A. The discount on bonds payable represents extra cash received when the bonds were issued. B. The discount on bonds payable is considered extra future interest expense, because of the cash not received at bond issuance. C. The discount on bonds payable has a credit balance which adds to the bond's carrying value. D. The discount on bonds payable represents a decrease in future interest expense