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1. Which of the following represents the largest number of common shares? A) Tre

ID: 2549414 • Letter: 1

Question

1. Which of the following represents the largest number of common shares? A) Treasury shares. B) Issued shares. Outstanding shares. Authorized shares. D) 2. Two categories of expenses in merchandising companies are cost of goods sold and financing expenses. operating expenses and financing expenses. cost of goods sold and operating expenses. other expenses and cost of goods sold. A) B) 3. Which one of the following is not a common form of stock? A) Treasury B) Common C) Accrued D) Preferred 4. The balance in Accumulated Depreciation represents the cash fund to be used to replace plant assets. amount to be deducted from the cost of the plant asset to arrive at its fair market value. amount charged to expense in the current period. amount charged to expense since the acquisition of the plant asset. A) B) C) D) 5. All the following are needed for the computation of depreciation except A) B) C) D) training costs of manufacturing personnel. cost. salvage value. estimated useful life. 6. Which of the following is not an intangible asset that is reported on the balance sheet? A) Goodwill. B) Trademarks. C) Employees. D) Copyrights.

Explanation / Answer

Answer:

1.D.Authorized shares - it is upper limit upto which a company can issue shares

2.C.Cost of goods sold and Operating expenses.Merchandising companies sell goods so expenses pertain to same.

3.C.Accrued.This is a form of Income or expense which is incurred or earned but not paid or received.

4.D.Amount charged to expense since the acquisition of plant asset

5.A.Training cost of manufacturing personnel.Depreciation = (Cost - salvage value)/ estimated useful life

6.C.Employees