1.Which of the following would not be included in a companys total stockholders equity?

Investments in equity securities

Additional paid-in capital

Retained earnings

Treasury stock

2.How do dividends in arrears on cumulative preferred stock appear in the financial statements?

as a liability on the balance sheet

as a contra equity item

as an expense on the income statement

dividends in arrears will not appear as a line item within the financial statements, but must be disclosed in the notes to the financial statements

3.Treasury stock acquired during the period and held at the end of the period is presented in the financial statements as:

A contra revenue item in the income statement

An asset in the balance sheet

A contra stockholders equity item in the balance sheet

An expense in the income statement