QUESTION 10 Preferred stock: is usually a more risky investment than common stock gives preference to a corporation's profits and assets. usually maintains voting rights. None of the above are correct. QUESTION 11 A dividend is declared by: the board of directors. president of the corporation. stockholders. CFO of the corporation QUESTION 12 A distribution to stockholders in the form of stock is called a stock conversion cash dividend stock dividend. stock split QUESTION 13 A prior period adjustment would be necessary when: a stock dividend is declared. depreciation expense was understated the prior year. a cash dividend is declared. a stock dividend is paid. QUESTION 14 A stock split: increases the number of shares outstanding. reduces the par or stated value in proportion. is the same as a cash dividend. Both increases the number of shares outstanding and reduces the par or stated value in proportion are correct