Table 13-4
the Shareholders' Equity Section of the Balance Sheet

question 140

Multiple Choice

Table 13-4
The shareholders' equity section of the balance sheet of Cresco Corporation follows:
$$\begin{array} { | l | r | } \hline \text { Contributed capital: } & \\\hline \text { Preferred shares, cumulative, } \$ 3.50,4,000 \text { shares outstanding, } & \\\hline \text { liquidation value } \$ 56 \text { per share } & \$ 210,000 \\\hline \text { Common shares, } 20,000 \text { shares outstanding } & 397,500 \\\hline \text { Retained earnings } & 138,250 \\\hline\end{array}$$ Note: There are two years of dividends in arrears on the preferred shares, including the current year.
-Refer to Table 13-4.The book value per share for preferred shares is:

• A) $52.50
• B) $56.00
• C) $63.00
• D) $59.50

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Definitions:

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A trance-like mental state induced by a hypnotist, characterized by heightened focus, suggestibility, and relaxation.

Encoding-Specificity

A principle stating that memory recall is most effective when information available at the time of encoding is also present at the time of retrieval.

Word Pairs

is a cognitive task involving the linking of two words together, often used to test memory or associative learning.

Recall

The act of retrieving information or memory from the past, which can vary in effort depending on how the information was encoded and stored.