Multiple Choice
Preferred stock dividends are
1. a legal obligation
2. not a legal obligation
3. exempt from federal income taxation
4. not exempt from federal income taxation
A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4
Correct Answer:

Verified
Correct Answer:
Verified
Q16: The statement of cash flow places emphasis
Q17: Earnings are<br>A)retained<br>B)distributed<br>C)invested<br>D)retained and/or distributed
Q18: Analysis of preferred stock uses<br>A)operating income (EBIT)<br>B)earnings
Q19: Stock splits and stock dividends increase the
Q20: If inventory is sold for cash, inventory
Q22: If a firm's inventory turnover is 4
Q23: If a cumulative preferred stock pays a
Q24: If the ratio of debt to equity
Q25: Inventory turnover may increase if<br>A)the firm increases
Q26: Cash dividends<br>1. are paid from earnings<br>2. increase