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The questions are indicated on the picture. 15. Which of the following shareholder rights is most commonly enhanced in an issue of preferred stock? a.

The questions are indicated on the picture.

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15. Which of the following shareholder rights is most commonly enhanced in an issue of preferred stock? a. The right to vote for the board of directors. b. The right to maintain one's proportional interest in the corporation. c. The right to receive a full cash dividend before dividends are paid to other classes of stock. d. The right to vote on major corporate issues. (Adapted) 16. Which of the following features of preferred stock would most likely be opposed by common shareholders? a. Par or stated value. c. Redeemable. b. Callable. d. Participating. (Adapted) 17. Which of the following is not a part of other components of equity? a. Revaluation reserve. b. Retained earnings c. Exchange differences on translating foreign operations d. Effective portion of cash flow hedges 18. Farnon Company has not declared or paid dividends on its cumulative preferred stock in the last three years. These dividends should be reported a. in a note to the financial statements. b. as a reduction in stockholders' equity. C. as a current liability. d. as a noncurrent liability. (Adapted) 19. A quasi-reorganization usually results in a net a. write-down of assets and the elimination of a deficit. b. write-down of assets and the continuation of a deficit. c. write-up of assets and a net write-down of retained earnings. d. write-down of assets and a net write-down of retained earnings, (Adapted)

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