Reference no: EM132582368

Question 1: The book value of an asset is:

1. The undepreciated cost of the asset.

2. The current replacement cost of the asset.

3. The original cost of the asset.

4. The accumulated depreciation on the asset to date.

Question 2: Inventory Shrinkage is caused by:

1. Shoplifting

2. Breakage

3. Spoilage

4. All three of the above

Question 3: Which of the following would usually be the greatest amount?

1. The number of shares authorized.

2. The number of shares issued

3. The number of shares outstanding

4. They must all be the same amount.

Question 4: Who has the primary function of setting corporate policies?

a. Stockholders

b. Board of directors

c. Operations officers

d.Chief executive officer (CEO)

Question 5: The cash a company receives by issuing new shares of capital stock would appear as a positive cash flow from investing activities on the cash flow statement.

True

False

Question 6: Net sales is calculated by:

1. Subtracting cost of sales from sales.

2. Subtracting sales returns and sales discounts from sales.

3. Subtracting sales returns, cost of sales, and sales discounts from sales.

4. Subtracting gross profit from sales.