1: All of the following constituencies would be considered stakeholders of a business except:

a-		management and employees.
b-		suppliers and creditors.
c-		the local community in which the business operates.
d-		stockholders.
e-		All of the groups listed above are stakeholders.

2: The income statement line item that shows the performance of operating activities without consideration of financing is:

a-		net income.
b-		EBIT.
c-		EBT.
d-		total assets.

3: A firm had a piece of machinery that cost $7,000 when new and has accumulated $4,500 in depreciation. If the machine is sold for $4,000, which of the following is true?

a-		The firm has a taxable gain of $4,000 on the sale of the machine
b-		The firm has a taxable gain of $1,500 on the sale of the machine
c-		The firm has a deductible loss of $3,000 on the sale of the machine
d-		The firm has a taxable gain of $7,000 on the sale of the machine