1. Dividends declared in one reporting period and payable in the next reporting period must be recorded as a liability on the: (2 marks)

   	A.	Payment date.
   	B.	Declaration date.
   	C.	Record date.
   	D.	Ex-Dividend date.

2. GK Ltd. has 40,000 no-par common shares and 20,000 cumulative, no-par ($1dividend) preferred shares outstanding. The preferred shares are fully participating based on the ratio of the number of shares in each class. No preferred dividends have been paid for the prior two years. The common share matching dividend is $2. Total dividends paid in the current year is $200,000. The preferred share dividend for the current year is: (4 marks)

   	A.	$40,000
   	B.	$60,000
   	C.	$80,000
   	D.	$100,000

3. The primary purpose of a stock split issue is generally to: (2 marks)

   	A.	Reduce the market price per share.
   	B.	Increase share capital.
   	C.	Decrease the liability for dividends.
   	D.	Give shareholders more voting rights.

4. Securities issued as debt, but intended by a company to be exchanged for shares by investors at or prior to maturity, are called: (2 marks)

   	A.	Hybrid financial instrument
   	B.	Compound financial instruments
   	C.	Convertible debt
   	D.	All of the above