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The Following Information Is Taken from the Balance Sheet and Related

Question 163

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.

Correct Answer:

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