Place the number corresponding to each of the following characteristics in the appropriate section of the diagram. If a characteristic applies to both bonds payable and common shares, place that number in the overlapping section. 

1. Shown on the right side of the balance sheet.

2. A form of equity financing.

3. A form of debt financing.

4. Represents ownership in a corporation.

5. Can be bought or sold on a secondary market

6. Prices will tend to fluctuate

7. By law, the corporation must pay the investor a return on their investment.

Transcribed Image Text:

Common Bonds Payable Shares