1. When preparing a Statement of Shareholders' Equity, which column is dividends deducted from?

A.

Total Shareholders' Equity

B.

Common Shares

C.

Contributed

SurplusShare

Repurchase

D.

Retained Earnings

2. The ________ measures a company's success in using its assets to earn income for the stakeholders who are financing the business.

A.

return on equity

B.

return on assets

C.

debt-to-equity ratio

D.

current ratio

3. A corporation can be set up as _______.

A.

a public corporation

B.

a private corporation

C.

either a public corporation or a private corporation

D.

neither a public nor private corporation

4. Highly liquid short-term investments that can be converted into cash with little delay are called _______.

A.

notes receivable

B.

prepaids

C.

cash equivalents

D.

trading securities

5. The cash flow statement _______.

A.

does not have to be completed if a balance sheet is prepared

B.

may be combined with the shareholders' equity section of the balance sheet

C.

is required by generally accepted accounting principles

D.

is prepared at the option of management