Which of the following will reduce the owners' equity of the<br/>enterprise? A: Extract for surplus reserve B: Withdrawal of public welfare funds C: Payment of common stock dividends D: Increase capital stock with capital reserve<br/>The

Which statement regarding the liabilities and owners’ equity section of balance sheet is False? A: Payment of Dividend Payable eliminates both the assets and the owners’ equity. B: Liabilities are debts or obligations that must be discharged in money or services in the future. C: Owners’ equity is a residual claim to the remaining assets after discharge of debts. D: Balance sheet of corporations should separate Capital Stock and Retained Earnings

Which of the following is not a financial asset? A: Common stock B: Bank loans C: Preferred stock D: Buildings

Dividends come at the expense of _____ A: interest B: retained earnings C: liabilities D: stock

Which of the following statements related to preferred stock are correct? I. Preferred stock pays a constant dividend. II. Preferred stock is generally the cheapest source of capital for a firm. III. A decrease in the market value of preferred stock will increase a firm's weighted average cost of capital. IV. An increase in the rating of a preferred stock will increase the cost of preferred. A: II and III only B: I and IV only C: I and III only D: II and IV only E: I, III, and IV only