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Question 1
3 / 3 pts
(TCO 7) The chairperson of the board of directors has the
title of
chief financial
officer (CFO).
president.

chief executive
officer (CEO).
chief operating
officer (COO).

Question 2
3 / 3 pts
(TCO 7) If a corporation has only one class of stock, it is
understood to be
preferred stock.

common stock.
contributory stock.
equity stock.

Question 3
3 / 3 pts
(TCO 7) When a company issues common stock greater than its
par value, the excess should be credited to
retained earnings.
common stock.

paid-in capital in
excess of par.
capital.

Question 4
3 / 3 pts
(TCO 7) Stock that a corporation purchases from shareholders
is called

treasury stock.
authorized stock.
issued stock.
outstanding stock.

Question 5
3 / 3 pts
(TCO 7) The date when a cash dividend becomes a legal
obligation is on the
date of record.

declaration date.
last day of the
corporate year.
payment date.

Question 6
3 / 3 pts
(TCO 7) Book value per share of common stock is computed by
dividing
total paid-in
capital by the number of common shares of stock issued.
total paid-in
capital by the number of common shares of stock outstanding.
total stockholders’
equity by the number of common shares of stock issued.

total stockholders’
equity by the number of common shares of stock outstanding.

Question 7
3 / 3 pts
(TCO 1) The main purpose of the statement of cash flows is
to

provide information
about the cash receipts and cash payments during a period.
provide information
about the investing and financing activities during a period.
prove that revenues
exceed expenses if there is a net income.
assist banking
relationships.

Question 8
3 / 3 pts
(TCO 1) Creditors analyze the statement of cash flows to
determine
total interest
earned during the period.
the quality of the
company’s earnings.

whether or not the
company can pay interest on debt.
if management was
overpaid.

Question 9
3 / 3 pts
(TCO 1) The three types of activities reported on the
statement of cash flows are
operating,
investments, and financing.
operating,
investing, and free flow.

operating,
investing, and financing.
operating, indirect,
and direct.

Question 10
3 / 3 pts
(TCO 1) Usually, the most important category on the
statement of cash flows is cash flows from
operating
activities.
investing
activities.
financing
activities.
noncash activities.