To start a business a person needs: A. Capital. B. A good accountant. C. Internal control. D. All of the above. 17. The statement of cash flows is used to assess? A. Management of cash flows. B. Measure liquidity C. Anticipate the need for additional financing. D. All of the above. 18. Stock splits: A. Allow management to conserve cash. B. Give stockholders more shares. C. Cause no change in total assets, liabilities, or stockholders' equity. D. Allow management to give stockholders more shares, and cause no change in total assets, liabilities, or stockholders' equity. 19. To receive the next cash dividend, an investor must purchase the stock before the. A. Dividend declaration date. B. Ex-dividend date. C. Date of record. D. Payment date announced by the board of directors. 20. Dividends become a liability of a corporation: A. On the date the board of directors declares the dividend. B. On the date of record. C. On the date payment is to be made. D. When cumulative preferred stock dividends are in arrears. 1. Accounting terminology Listed below are nine technical accounting terms introduced in this chapter: Each of the following statements may (or may not) describe one of these technical terms. In the space provided beside each statement, indicate the accounting term described, or answer "None" if the statement docs not correctly describe any of the terms. (a) The type of stock whose owners have little say in management of the corporation and whose annual dividend is limited to a preset amount. (b) Distribution of cash or other company assets to the owners of a corporation. (c) Shares of a corporation's stock that have been issued and then reacquired, but not cancelled. (d) An element of stockholders' equity arising from the profitable operations of a business. (e) The type of stock most likely to increase dramatically in value if the issuing corporation is extremely successful