a$.$ During $2022,$ Nova Corp recorded below journal entry after declaration and payment of a cash dividend

Retained Earnings $($Common Shares$)10,000$

Retained Earnings $($Preferred Shares$)3,600$

Cash $13,600$

Total values of common and preferred shares outstanding were $$70,000$ and $$40,000,$ respectively. No dividends were declared or paid during $2021.$ There are $1,000$ common treasury shares. Calculate the dividend rate on the preferred shares when they are: i$.$ Noncumulative and ii$.$ Cumulative. $(5$ marks$)$

b$.$ Match the type of business with their characteristics below. $($Write the no$.$ of the characteristic and the alphabet of the type of business next to it$.$ Eg$.1.$ A or B etc.$)(5$ marks$)$

Type of Business

A$.$ Corporation

B$.$ Partnership

C$.$ Sole proprietorship

D$.$ Partnership and sole proprietorship

Characteristic

i$.$ Uses a dividends declared account.

ii$.$ Uses a profit ratio to allocate earnings among the owners.

iii. Requires a charter.

iv$.$ Issues share certificates.

v$.$ Has only one owner.