1) the effect of stock dividend is to a) decrease total assets and stockholders equity b) change the composition of stockholders equity c) decrease total assets and total liabilities d) increase the book value per share of common stock

2) using the indirect method which of the following adjustments to convert net income to net cash provided by operating activities is correct?

a) accounts receivable add to net income; increase, deduct from net income, decrease

b) prepaid expense; add to net income, increase, deduct from net income: decrease

c) inventory, add to net income: decrease, deduct from net income: increase

d) taxes payable, add to net income: decrease, deduct from net income: increase

3) Steinkuhler, Inc. decided on January 1 to discontinue its telescope manufacturing division. On july 1, the division's assets with a book value of $840,000 are sold for $600,000. Operating income from january 1 to june 30 for the division amount to $100,000. Ignoring income taxesm what total amount should be reported on Steinkuler's income statement for the current year under the caption, Discounted operations?

4) The rem risidual claim refers to a shareholders right to

a) receive dividends

b) share in assets upon liquidation

c) acquire additional shares when offered

d) exercise a proxy vote