The Following Information Is Taken from the Balance Sheet and Related

question 14

Multiple Choice

The following information is taken from the balance sheet and related disclosures of Maxwell, Inc.: Which of the following statements is (are) true? (Fr this question, more than one answer may be correct.)

• A) The preferred dividends in arrears amount to $120,000 and should appear as a liability in the corporate balance sheet.
• B) The book value per share of common stock is $35.
• C) The stockholders' equity section of the balance sheet should include a deficit (negative amount in retained earnings) of $700,000.
• D) The company has paid no dividend on its common stock during the past two years.

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Definitions:

Coelomic Fluid

Fluid found within the coelom, the body cavity of most animals, which aids in the transport of gases, nutrients, and waste materials.

Nephridia

Excretory organs in many invertebrates, including annelids, that serve to remove metabolic wastes from an organism’s body.

Earthworm

A terrestrial invertebrate belonging to the phylum Annelida, known for its role in aerating the soil and enhancing soil fertility.

Bladder

A hollow organ in the lower abdomen that stores urine from the kidneys before disposal.