Question $6$ of $12$

All students at the University of Michigan$-$Ann Arbor have to understand the accounting equation to graduate. What is the equation?

Assets $=$ Liabilities $+$ Shareholders' Equity

Current Assets $=$ Current Liabilities $+$ Common Stock

Assets $=$ Liabilities $-$ Shareholders' Equity

Shareholders' Equity $=$ Assets $x$ Liabilities

Question $7$ of $12$

Schaden Corp uses a preferred dividend that accumulates from year to year until paid. What type of dividend is this?

Annual dividends

Stated dividends

Outstanding dividends

Cumulative dividends