3. Financial flexibility is assessed by evaluating
   1. profitability.
   2. leverage.
   3. liquidity.
   4. efficiency

3. Additional paid-in capital represents
   1. the value of earnings not paid out as dividends.
   2. the difference between contributed capital and earned capital.
   3. the value of repurchased treasury stock.
   4. the difference between par value and market value.

3. A deficit occurs when a company's
   1. retained earnings are less than its common stock.
   2. dividends distributed are greater than comprehensive income.
   3. dividends and cumulative losses are greater than cumulative net income.
   4. retained earnings are less than assets minus liabilities.