1.Common shareholders have all of the following rights except the right to:

a. vote on company plans and investments.

b. share in assets upon liquidation in proportion to their holdings.

c. share corporate profit through receipt of dividends.

d. vote for the board of directors.

2.The dominant form of business organization in Canada is

a. the corporation.

b. the proprietorship.

c. the partnership.

d. not known.

3.The effect of a stock dividend is to

a. increase total shareholders' equity.

b. decrease total assets and total liabilities.

c. change the composition of shareholders' equity.

d. decrease total assets and shareholders' equity.

4.When preparing the operating section using the indirect method, common adjustments include all of the following except:

a. changes in noncash current assets and liabilities.

b. issuing common shares.

c. gains and losses.

d. noncash expenses such as depreciation.

5.Operating activities include cash outflows to:

a. make loans to other companies.

b. suppliers for inventory.

c. purchase property and equipment.

d. purchase debt or equity securities.