Done ACC 3003 Test 2 practice T... ACC 3003 Test 2 practice Question one Choose the correct answer for the followings and write your answer in the given box 1) The shareholders' equity of Green Corporation includes $200,000 of S1 par common stock and S400,000 par of 6% cumulative preferred stock. The board of directors of Green declared cash dividends of S50,000 in 2018 after paying $20,000 cash dividends in each of 2017 and 2016. What is the amount of dividends common shareholders will receive in 2018? A) $18,000. BS26,000 $28,000 D) $32,000 2) Which of the following items would not form part of the shareholders' equity of a company on the statement of financial position? Ordinary share capital Trade payables Share premium D) Retained profits 3) Preferred stock is called preferred because it usually has two preferences. These preferences relate to: A) Dividends and voting rights B) Par and dividends The preemptive right and voting rights. Assets at liquidation and dividends. 4) Paid-in capital in excess of par is reported: A) As a reduction of shareholders' equity. B) As a noncurrent asset. As a noncurrent liability, DAs an increase in shareholders' equity. 5) The par amount of shares issued is normally recorded in the A) Paid-in capital in excess of par account aCommon stock account. Retained earnings account. D Appropriated retained earnings account 6) The disadvantages of the partnership form of business organization, compared to corporations, include A The legal requirements for formation Unlimited liability for the partners. The requirement for the partnership to pay income taxes. D) The extent of governmental regulation The complexity of operations