- 14. To be relevant, accounting information must a. improve the company's internal control. b. be presented on the balance sheet. c. be recorded at historical cost. d. be capable of making a difference in a decision. 15. If Chu Corporation has total shareholders' equity of $1,500,000, preferred share-holders' equity of $500,000, $50,000 of preferred dividends in arrears, $50,000 of current preferred dividends, and 90,000 common shares, book value per common share is a. $15.56. b. $10.00 c. $16.67 d. $11.11. 16. Ownership of common shares ordinarily carries the right to a. declare dividends. b. establish a drawings account. c. enter into contracts for the corporation. d. vote on corporate actions that require shareholder approval. 17. As an indicator of financial health, a low ratio is desirable for the a. asset turnover ratio. b. return on assets ratio. c. acid test ratio. d. debt to total assets ratio. tho anh flow statement the activities that affect cash flows are listed in the following