Question 1 (1 point) When shares are repurchased for less than their cost, the difference is recognized as contributed surplus. ordinary gains. extraordinary gains. an increase to retained earnings. Question 2 (1 point) When a company decides to repurchase shares it's previously sold, this is referred to as retired share capital. treasury shares. a buyback. contributed surplus. Question 3 (1 point) A major advantage of using equity financing is dividends are not optional. ownership interests are not diluted. dividends are deductible for tax purposes. there is no requirement for repayment. Question 4 (1 point) Which of the following statements is true? Dividends are guaranteed to preferred shareholders. Dividends accumulate on common shares. Dividends are only issued if the board of directors declares them. Dividends are paid to all classes of shares on the same basis