A line of credit provided by a commercial bank gives a company the right (but not the obligation) to borrow a specified maximum amount of funds over a specified period of time

Dividends in arrears on cumulative preferred stock

a. never have to be paid, even if common dividends are paid. b. must be paid before common stockholders can receive a dividend. c. should be recorded as a current liability until they are paid. d. enable the preferred stockholders to share equally in corporate earnings with the common stockholders.

Which of the following would most benefit economically from inflation?

a. Creditors b. Debtors c. Individuals with fixed incomes d. Depositors with savings accounts