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7. Which of the following is not a right of preferred shareholders? a. The right to vote b. Be first to claim dividends c. Preference over assets in case of liquidation d. To receive delayed dividends if they are cumulative 8. The "Treasury Stock" account is presented in the "Balance Sheet" as: a. Asset b. Liability c. Investment account d. Subtracted in the capital section (Stockholder's Equity) 9. The authorized shares are equal to the number of issued and outstanding shares. a. true b. False 10. In the following distribution of dividends in a corporation, no wage entry is made: a. cash-dividend b. stock dividend c. stock-split d. property dividend 11. If the stock is issued (sold) for less than its par value, the account a. Paid in Capital in Excess of Par Value is accredited b. Paid in Capital in Excess of Par Value is debited c. Retained Earnings is credited d. Paid in Capital in Excess of Par Value is not used 12. The contractual restriction of "Retained Earnings" is one where the company voluntarily restricts a part of its retained earnings (Retained Earnings) to expand or buy new facilities. a. true b. False 13. When a Stock Dividend of 40% of the total outstanding shares is declared, the Retained Earnings account is debited at par value. a. true b. False

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