Wednesday, November 13, 2019

The decision to issue additional shares of stock is an example of which one of the following?


The decision to issue additional shares of stock is an example of which one of the following? 
 
A. 
working capital management

B. 
net working capital decision

C. 
capital budgeting

D. 
controller's duties

E. 
capital structure decision
Refer to section 1.1


18.
Which of the following accounts are included in working capital management?

I. accounts payable
II. accounts receivable
III. fixed assets
IV. inventory 
 
A. 
I and II only

B. 
I and III only

C. 
II and IV only

D. 
I, II, and IV only

E. 
II, III, and IV only
Refer to section 1.1


19.
Which one of the following is a working capital management decision? 
 
A. 
determining the amount of equipment needed to complete a job

B. 
determining whether to pay cash for a purchase or use the credit offered by the supplier

C. 
determining the amount of long-term debt required to complete a project

D. 
determining the number of shares of stock to issue to fund an acquisition

E. 
determining whether or not a project should be accepted
Refer to section 1.1


20.
Which one of the following statements concerning a sole proprietorship is correct? 
 
A. 
A sole proprietorship is designed to protect the personal assets of the owner.

B. 
The profits of a sole proprietorship are subject to double taxation.

C. 
The owner of a sole proprietorship is personally responsible for all of the company's debts.

D. 
There are very few sole proprietorships remaining in the U.S. today.

E. 
A sole proprietorship is structured the same as a limited liability company.
Refer to section 1.2

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