The net assets of a corporation are equal to: A. Total assets - total liabilities. B. Total assets - retained earnings. C. Total assets + total liabilities. D. Total assets + retained earnings. 8. Most preferred stocks have one or more of the following characteristics, except. A. To receive dividends on a preferred basis. B. Cumulative dividends. ? C. Voting rights. D. Callable at the option of the corporation. 9. When shares of stock are sold from one investor to another. they will trade at: A. Par value. B. Book value. C. Market value. D. Stated value. 10. Stock that had been issued by a corporation, and later reacquired, is classified as: A. Treasury stock. B. Non-participating preferred stock. C. Restricted stock. D. Issued shares. 11. Dividends are first recorded and retained earnings are reduced on: A. The cx-dividend date. B. The date of record. C. The date of declaration. D. The date of payment. 12. Treasury stock appears as: A. An asset account. B. A liability account. C. An expense account. D. A contra-cquity account. 13. Of the items listed, which would describe preferred stock? A. Preferred as to dividends. B. Preferred as to liquidation rights. C. Both A & B. D. None of the above. 14. Which of the following would be classified as an extraordinary item? A. A large gift given to the company. B. A loss from obsolete inventory. C. A loss from a natural disaster that affects the company at infrequent intervals. D. A loss from an enacted law that made inventory unsalable. 15. Par value represents: A. The minimum legal value of a share of common stock. B. Market price of a share of common stock. C. The value of a share of common stock divided by EPS. D. Market price divided by book value of a share of stock